Kvatashidze, Nadejda2021-12-202021-12-202021VI International Scientific Conference: "Challenges of Globalization in Economics and Business", Tbilisi, 2021, pp. 170-176978-9941-491-35-1https://dspace.tsu.ge/handle/123456789/9001. ფინანსური ანგარიშგების კონცეპტუალური საფუძვლები. (2021). 2. ბასს 1 ფინანსური ანგარიშგების წარდგენა. (2021). 3. ბასს 36 აქტივების გაუფასურება.( 2021). 4. [4] ბასს 2 მარაგები. (2021). 5. M.Vardiashvili.(2019) Citation: Some Issues of Measurement of Impairment of Non-Financial Assets in the Public Sector https://publications.waset.org/10010307/some-issues-ofmeasurement-of-impairment-of-non-financial-assets-in-the- public-sector 6. [N.Kvatashidze, L.Sabauri. (2019). Citation: ISSUES OF ACCOUNTING FOR THE IMPAIRMENT OF FINANCIAL INSTRUMENTS. 202. https://www.tsu.ge/data/file_db/economist_faculty/konf%20 IV.pdf 7. ფასს 9 ფინანსური ინსტრუმენტები.( 2021) 8. ბასს 37 ანარიცხები, პირობითი ვალდებულებები და პირობითი აქტივები. (2021) წლის მდგომარეობით.The paper deals with essence, purpose, valuation and reflection of provisions in the financial reporting. Provisions are the funds envisaged for preventing negative impact of various circumstances on the financial results. Financially, the creation of provisions is reflected in the recognition of expected losses. Under the conceptual framework for financial reporting, the provisions in the financial statements are reflected according to the concepts of financial capital maintenance, prudence, and impairment of equity. Keeping In mind these requirements, the relevant provisions are reflected in all sections of the financial reporting. The provisions related to assets and liabilities are an estimated value, the calculation of which requires professional judgment and development of appropriate accounting policies, which ultimately determines reliability of the information. As a result, users of the financial reporting-related information are provided with a realistic information, which in turn helps them to make accurate forecasts and decisions. Purpose of the provisions related to assets and liabilities is to adjust their carrying amount by forecasting the uncertainties and the expected risks and making professional assessments. The reflection of provisions in the financial reporting ensures that the information is realistic - the assets are not overvalued, while the liabilities are not undervalued.geProvisions; Impairment provisions; Gains; Reclassification; Credit lossArticle