Accounting Provisions: General Accounting Rules

Accounting provisions constitute a fundamental pillar of company accounting and reflect the principle of prudence as stated in article 121-4 of the French General Accounting Plan (PCG). They allow for anticipating probable charges or losses, thus ensuring a faithful image of the company's assets and results. Their entry in the balance sheet and their impact on the income statement require methodological rigor and perfect knowledge of the French regulatory framework. This article details applicable rules and criteria...