- 14 Marks
FR – Nov 2019 – L2 – Q4b – Provisions, Contingent Liabilities and Contingent Assets (IAS 37)
Distinguish between provisions, contingent liabilities, and contingent assets as defined in IAS 37.
Question
IAS 37 – Provisions, Contingent Liabilities and Contingent Assets, sets out the principles of accounting for these items and classifies when provisions should not be made prior to its issue. The inappropriate use of provisions has been an area where companies have been accused of manipulating financial statements and of creative accounting.
Required:
Distinguish between provisions, contingent liabilities, and contingent assets as contained in IAS 37.
(14 Marks)
IAS 37 – Provisions, Contingent Liabilities and Contingent Assets, sets out the principles of accounting for these items and classifies when provisions should not be made prior to its issue. The inappropriate use of provisions has been an area where companies have been accused of manipulating financial statements and of creative accounting.
Required:
Distinguish between provisions, contingent liabilities, and contingent assets as contained in IAS 37.
(14 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Contingent Assets, Contingent Liabilities, IAS 37, Provisions
- Level: Level 2
- Topic: Contingent Liabilities and Contingent Assets (IAS 37)
- Series: NOV 2019