Long-term Provisions
General Instructions for Preparation of StatementsLong-term provisions for employee benefits, warranties, etc., due beyond 12 months.
Long-term Provisions Workings
Schedule III, Part I — Division I (Section E) — FY 2025-26Definition
Provisions for which the outflow of resources embodying economic benefits is expected to occur beyond 12 months after the reporting date.
Recognition Criteria
Recognized under AS 29 when: (a) the company has a present obligation as a result of a past event; (b) it is probable that an outflow of resources will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the obligation.
Measurement Principles
Measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.