FRS 12: Provisions and Contingencies
13 September 2012
FRS 12 goes much further to cover provisions - an area of accounting that has no real guidelines. Andrew Harrington investigates
FRS 12 was issued in September 1998, and attempts to ensure that provisions and contingencies are treated and disclosed in an appropriate manner. It replaced SSAP 18, but goes much further to cover provisions - an area of accounting that had no real guidelines, and was therefore open to abuse.
Prior to FRS 12, it was quite common for companies to set up...