IAS 37 (Provisions and Contingencies)

IAS 37(Provisions - control or A Present obligations that are not recognized because A Future transfer is not probable or A Amount cannot be

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Click to edit Master subtitle style   IAS 37 Provisions, Contingent Liabilities  and Contingent Assets
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  IAS 37 Definition of a provision: a liability of uncertain timing or amount Provisions are recognized when: Entity has a present obligation to transfer economic benefits as a result of a past event It is probable (i.e., more likely than not) that such a transfer will take place A reliable estimate of the amount of the obligation can be made Note: Existence of a liability is not the question, 22
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  Contingent liabilities: Not the same as “provisions” Represent: A Possible obligations whose existence will be confirmed only by the occurrence (or not) of an uncertain future event outside of the entity’s
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Unformatted text preview: control or A Present obligations that are not recognized because: A Future transfer is not probable or A Amount cannot be reliably estimated • Contingent liabilities are not recognized but are 33 • Contingent Assets ▫ Possible assets whose existence will be confirmed only by the occurrence (or not) of an uncertain future event outside of the entity’s control ▫ Are not recognized as assets until realization of income is virtually certain • Contingent assets are disclosed and described in the FS notes including an estimate of their potential financial effect (same for contingent liabilities) 44...
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This note was uploaded on 03/19/2011 for the course ACCT 440 taught by Professor Smith during the Spring '11 term at Saginaw Valley.

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IAS 37(Provisions - control or A Present obligations that are not recognized because A Future transfer is not probable or A Amount cannot be

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