- The module is useful when:
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You have a dilemma if you should set up a liability provision or do not know how and when to disclose a contingent liability
You want to quickly calculate holiday pay provision or warranty cost accrual
You have calculated a provision for leaves or provision for warranty claims but there is no one to check your calculations
You want to quickly ascertain whether provision recognition criteria have been met.
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Service description24iValue imitates the process of thinking and the actions a conventional audit-accounting expert implements to calculate provisions for liabilities, including warranty repairs provision or provision for employee benefits.
The system will guide you step by step through the process of the necessary analysis and calculations, so that even if you know very little about these difficult estimates you can independently determine whether the recognition criteria for provisions have been met or can calculate the provisions for warranty repair costs, the provision for unused holiday leave or actuarial provisions for retirement bonuses.
Using 24iValue you will quickly check or calculate holiday accrual or see what amount of warranty provision should be recorded. You can save a lot of time and you will need just a small amount of information.
This service is very useful when you want to very quickly and independently calculate the provision for retirement bonus, provision for holiday allowance or provision for warranty repairs.
This module will also help if you figured out provision but you have no one to check your calculation.
You will also quickly assess if any of the provision recognition criteria has been met and if you should recognise a provision or disclose a contingent liability.
Do you know that ... ?
There are three key recognition criteria that determine a liability provision:
(1) an entity has a present obligation as a result of a past event
(2) an outflow of resources to settle the obligation is probable
(3) a reliable estimate can be made of the amount of the obligation.
The three above criteria support the definition of a provision. If the three provision recognition criteria are not met at the same time, reconsider making the liability provision.
A reliable assessment of liability provisions is a difficult task often facing accountants. It requires much experience, taking into account the specific nature of the company and the events that take place in the company. Often advanced estimation methods need to be applied as well as probability theory or cash flow discounting.
When making estimates, often you may find yourself at a dead end. Thinking up complex ways to determine the amount of provisions for liabilities may take lots of time.
Often, the desired effect can be achieved with much simpler methods - tested in practice by others.
If we do not account for the specific features of the company and events that take place, the liability provision will be inadequate to future developments. Skipping the aspect of probability may result in material errors.
The 24iValue provision module is an answer to all those who are looking for a simple and fast method to make a reliable provision estimate, e.g. to check or calculate holiday accrual or see the amount of warranty provision.
24iValue has led us by the hand, prompting available solutions. As a result, estimation of provisions becomes very easy and not too time consuming.
On the basis of very little information, 24iValue helps estimate provisions that are adequate to what is going in the company. Instead of looking for advanced estimation and extrapolation methods, you can use the intuitive and fast methods to estimate selected provisions that are embedded in the system. 24iValue will save time of you and also of other people in the company who are involved in the process of collecting information necessary to estimate liability provisions.
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Provision for Liabilities