Lec-28 - Advanced Financial Accounting FIN-611 Mian Ahmad...

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Unformatted text preview: Advanced Financial Accounting FIN-611 Mian Ahmad Farhan Lecture-28 Events after Balance-sheet IAS-10 Provisions, Contingent Liabilities & Assets IAS-37 IAS-37 Provision, Contingent liabilities & Contingent Assets Provisions Reduction in assets 1. Provision for doubtful debts 2. Provision for depreciation Increase in liabilities 1. Future Losses Provision Provision is a liability of uncertain timing and events Three Stages of Liabilities Certain liabilities Virtually certain liabilities Uncertain liabilities Trade payables Accrued expenses Provision for losses Status (Present obligation) Certain liability Virtually certain liability Uncertain liability Resulting from (Past events) Certain liability Virtually certain liability Uncertain liability Outflow of economic benefit (Probable) Certain liability Virtually certain liability Uncertain liability Amount Certain amount Virtually certain liability Uncertain liability Timing Certain amount Virtually certain liability Uncertain liability Journal Entries Trade payable Purchases A/c xxx Trade payable xxx Accrued expense Expenses xxx Accrued Expenses xxx Provision Expenses xxx Provision of losses xxx Against services Repair xxx Accounts payable xxx Obligating Events Obligating event is an event that creates a legal...
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This note was uploaded on 05/15/2010 for the course ACCOUNTING B97702031 taught by Professor Lyz during the Spring '09 term at Punjab Engineering College.

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Lec-28 - Advanced Financial Accounting FIN-611 Mian Ahmad...

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