Recording Incident-Linked Amounts
When the incident has been declared, we can record amounts linked to the incident and its consequences, for example losses.
A loss is the negative financial consequence of an incident.
A gain is the positive financial consequence of an incident.
A provision is an amount deducted from the result to cover incident risks or unexpected charges. Several provisions can concern one and the same risk.
A recovery is a sum, which in certain circumstances can reduce the amount of losses linked to an incident. It enables recovery of a proportion of the amounts involved in the incident.