Final answer:
It is true that a company must disclose the changes in carrying value of a provision from the beginning to the end of the year. This is in line with accounting standards like IFRS and GAAP which demand transparency for better understanding of the company's financial performance.
Step-by-step explanation:
True, a company should disclose details of the change in carrying value of a provision from the beginning to the end of the year. This disclosure is important as it provides transparency regarding the movements and adjustments made to the provisions over the financial period, which is a requirement under various accounting standards like the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). These provide information that is vital for stakeholders in understanding the company's financial position and performance.
The disclosure typically includes the opening balance, additions, used amounts, unused amounts reversed, and the closing balance. For example, if a company has a provision for warranties at the beginning of the year and it estimates more or fewer returns than initially expected, this change should be reflected in the financial statements and disclosed accordingly.