Kustannusvaraukset
Kustannusvaraukset, often translated as provision for costs or contingent liabilities, are accounting entries used to recognize potential future expenses that are probable and can be reasonably estimated. These provisions are not for planned expenditures but rather for uncertain future events that may result in a financial obligation for the company. They are a crucial aspect of accrual accounting, ensuring that financial statements reflect a true and fair view of a company's financial position and performance by anticipating potential future outflows of economic resources.
The recognition of a kustannusvaraus requires two conditions to be met. Firstly, there must be a present
Common examples of kustannusvaraukset include provisions for warranties, where a company anticipates future repair costs for