7. Obior plc operates in a high technology industry where the external environment is dynamic and uncertain. Obior plc made a loss in the reporting period just ended and is now in the process of charging its strategy completely. The finance director has indicated to the board that, in consequence, Obior plc’s financial statements for the last reporting period will lack both predictive and confirmatory value for users In terms of the IFRS Framework, Obior plc will be reporting financial information which lacks the qualitative characteristic of Faithful representation Understandability Timeliness Relevance   8. Which of the following is identified by Mintzberg as a co-ordinating mechanism which integrates organisational building blocks ? Centralisation Standardisation of work Division of work Span of work

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.