Provision recognition: criteria for recognising liabilities, measurement by best estimate, and disclosure requirements under ICDS X framework for tax computation Recognition under ICDS X requires a present obligation from a past event, reasonable certainty of an outflow to settle the obligation, and a reliable estimate; contingent liabilities and contingent assets are not recognised (contingent assets monitored and recognised when inflow is reasonably certain). Provisions and recognised contingent assets are measured at the best estimate at year end and not discounted. Expected reimbursements are recognised only when reasonably certain and cannot exceed the provision. Provisions must be reviewed annually, used only for their original purpose, and disclosed by class with specified movements and expected reimbursements.