Provisionswerte

Provisionswerte are the monetary values attached to provisions in a company’s financial statements. They represent the estimated future outflows of resources that a present obligation will require, arising from past events. Provisionswerte are therefore the amounts recognized on the balance sheet as liabilities in order to cover uncertain costs.

The concept serves to ensure prudence in accounting and to reflect expected costs that are not yet settled but are probable and can be estimated. Provisions are governed by accounting standards such as IFRS IAS 37 or national rules like the German HGB, which require a provision to be recognized when there is a present obligation, the outflow of resources is probable, and the amount can be estimated reliably.

Measurement of provisions involves estimating the best forecast of the expenditure needed to settle the obligation. This includes assessing uncertainties and, for long-term provisions, considering the time value of money. If discounting is used, the present value is recorded as the provision, and the unwinding of the discount is recognized as a finance cost in later periods.

Typical types of provisions include warranty provisions, legal or tax provisions, onerous contract provisions, restructuring provisions, and pension or other post-employment provisions. Provisions are presented in the liabilities section of the balance sheet, often with notes that disclose estimation methods, key assumptions, and whether any discounting was applied.

Significant estimation uncertainty and sensitivity to changes in assumptions are common topics in the disclosure of Provisionswerte. Differences between IFRS and local GAAP can affect whether discounting is permitted and how provisions are measured and presented.