Peculiarities of Accounting and Taxation of Provisions in the Republic of Moldova

Abstract

Throughout their economic activity, businesses are exposed to various risks, which may lead to unforeseen expenses (losses). To cover such expenses/losses, companies put aside funds, i.e. provision estimates, which, in fact, are potential risk estimates, and represent one of the criteria affecting the reliability of financial reporting. The recognition and taxation of such provisions at Moldovan undertakings is governed by the National Accounting Standard (NAS) “Equity and Liabilities” [1] and by the Tax Code (TC). UDC 657.222.