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• Provisions for liabilities recorded when the payment date or amount are not certain (IAS 37 par. 7, 10) ,

• Provisions are established when (i) a present obligation (legal or constructive) has arisen as a result of a past event (the obligating event), (ii) payment is probable ('more likely than not'), and (iii) the amount can be estimated reliably. ( IAS 37 par. 14):

• If the three criteria are not satisfied simultaneously, reconsider the need to establish a provision.

Examples of errors are:

• Provisions are not reliably assessed or estimates are not adequately documented, they are based on feelings

• Provisions are not established as long as the liability is not confirmed or payable although the provision meets the recognition criteria (i, ii, iii)

• Provisions are established no matter if the requirement results from past events (e.g. future modernisation, budgeted operational losses)...

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