What is the difference between "provision of depreciation" and "allowance for depreciation?"
submitted by Namrah Amjad

Arnold

Same concept, different wording.

courage shone

Provision for depreciation is an assumption for depreciation set aside, while depreciation is the actual amount.

Md. Abdur Rahman

Provision for depreciation is an advance calculation for depreciation, while depreciation is the actual amount which is lost the Asset.

langelihle

provision is a predection of the amount to be charged but depreciation iz the calculated fingure or actual amount

solman mbaimbai

Depreciation is the loss in value of a fixed asset, whereas provision for depreciation is an anticipated loss in the value of an asset.

Tumelo Sibasa

Depreciation is the process of allocating the useful economic value of an asset over its useful economic life, whereas provision for depreciation shows the cumulative depreciation of an asset since its acquisition.

Thembalami herbic mabhena

Depreciation is part of a fixed asset which is worn out during its period of use, while a provision for depreciation is the money set aside in order to eventually replace a fixed asset.

Vernon K Dzwairo

Provision for depreciation mantains a credit balance always where as depreciation mantains a debit balance.

John Gacheru

Provision for depreciation is a prediction or mere approximation of an amount that a given asset or any item of PPE would have depreciated within a given period of time, while depreciation refers to actual loss in value of a given item.

Siobahn

It seems like everyone is answering the question, "What's the difference between provision of depreciation and depreciation?"

That's not what the OP asked. He wants to know the difference between PROVISION of depreciation and ALLOWANCE for depreciation.

RJ Fletcher

The main part of the question here is provision vs allowance. They both mean the same thing, in this case.

Both terms refer to the amount of money set aside for depreciation expenses. This number is subtracted from the company's profit to more accurately reflect the true value of its assets, thus providing a better figure for tax reasons.

Niyonzima Emmanuel

depreciation refers to actual loss in value of a given item or fixed asset

Veihamisa Tjiramba

Provision for depreciation is the lost of value of an asset whilst depreciation is the lost of value of a fixed asset.

FAIZ

Also, depreciation is shown on the profit and loss statement, and the provision for depreciation is shown on the liabilities side.

Raymond. .

Depreciation is the loss in the value of an asset item over time ...while provision is the probable loss of an asset

Bridget koma

Depreciation is a loss in the value of a fixed assets as it is used