Expense is recognized before cash is paid out. It is a liability with an uncertain timing or amount, but where the uncertaintyThe spread in estimates for schedule, cost and performance a... More is not significant enough to qualify it as a provisionProvisions can be distinguished from other liabilities such ... More. An example is a pending obligation to pay for goods or services received from a counterpart, while cash is to be paid out in a latter accounting period when the amount is deducted from accrued expenses.
