Recognition of Provisions requires present obligation, reasonable certainty and reliable estimate, affecting timing of tax deductions. ICDS X prescribes that a provision is recognised only when a present obligation from a past event exists, an outflow of economic benefits is reasonably certain, and a reliable estimate can be made; contingent liabilities and contingent assets are not recognised although a contingent asset may be recognised later when reasonable certainty of inflow exists. Measurement requires the best estimate at the previous year-end and prohibits discounting. Reimbursements are recognised only when reasonably certain and limited to the provision amount. Provisions are reviewed and adjusted each year-end and disclosures are required for each class of provision and assets recognised from contingent assets.