Is long term provision a long term debt?

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1165113

2026-08-03 03:20

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Yes, long-term provisions can be considered a form of long-term debt. They represent obligations that a company expects to settle over a period exceeding one year, such as pension liabilities or warranties. Unlike typical loans or bonds, provisions are based on estimates of future expenses and are recorded as liabilities on the balance sheet. Therefore, while they are not traditional debt instruments, they do reflect long-term financial commitments.

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