Small businesses use an accounts receivable reserve to cover bad debts and a bad debt provision to record them in their books.

You can also use the provision method of accounting to write off bad debts, reports Accounting Tools. This is a two-step process in which you first estimate and recognize the bad debt you'll ...

Stakeholders raised concerns that such accounting practices result in a gross-up of patient service revenue and the related provision for bad debts. The ASU says its objective is to provide financial ...

However, while the financial standards allow banks to make provision for these debts in their accounting, the Corporation Tax Act speaks about bad debt in a different light.

A post-GFC accounting change is set to make bank bad debts provisions - and profits - harder to predict, says KPMG.

Tax Facts 8757 / What accounting methods are available for a taxpayer to use in accounting for bad debts?

An accounting cushion is the overstatement of a company's expense provision to create a cushion for future results and smooth out earnings across periods.

National Australia Bank has increased its provisions for bad debts by $250 million in light of worse than expected economic conditions.