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future operating losses
restructuring
onerous contract
time value of money is material amount of provision should be based on the present value of the expenditure
gain or losses from the disposal of asset are not to be taken into account in measuring the provision.
determine the best estimate for the amount of provisions.
affect the amount required to settle the obligation should be reflected in the amount recognised as provision where there is sufficient objective evidence that they will occur.
probable
possible and remote
virtually certain
possible asset that arises from past events, and whose existence will be confirmed only by the occurance or non-occurance of one or more uncertain future events not wholly within the entity.
a possible obligation that arises from past events and whose existence will be confirm only by the occurance or non-occurance of one or more uncertain future events not wholly within the control of the entity.
probable
remote
possible
"a condition or situation, the ultimate outcome of which, gain or loss, will be confirmed only on the occurance or non- occurance og one or more uncertain future events"
defined as "liabilities of uncertain timing or both".
however, provision are different from liabilities such as accruals & payable
provision are uncertain on the timing or amount of future expenditure required in settlement.
an entity has a present obligation (legal or constructive) as a result of past event.
it is probable that an outflow of resourcess embodying economic benefits will be required to settle the obligations.
a reliable estimate can be made of the amount of the obligations
PROVISION
CONTINGENT LIABILITIES
CONTINGENT ASSETS
A PRESENT OBLIGATION OF ENTERPRISE ARISING FROM PAST EVENTS, THE SETTLEMENT IS EXPECTED TO RESULT IN AN OUTFLOW FROM THE ENERPRISE OF RESOURCES EMBODYING ECONOMIC BENEFITS.