Discuss the following terms used in MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors, and MFRS 137 Provisions, Contingent Liabilities and Contingent Assets. Provide brief examples to support the discussion: i)Retrospective method ii)Prospective method iii)Contingent assets
Discuss the following terms used in MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors, and MFRS 137 Provisions, Contingent Liabilities and Contingent Assets. Provide brief examples to support the discussion: i)Retrospective method ii)Prospective method iii)Contingent assets
Discuss the following terms used in MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors, and MFRS 137 Provisions, Contingent Liabilities and Contingent Assets. Provide brief examples to support the discussion: i)Retrospective method ii)Prospective method iii)Contingent assets
Discuss the following terms used in MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors, and MFRS 137 Provisions, Contingent Liabilities and Contingent Assets. Provide brief examples to support the discussion:
i)Retrospective method
ii)Prospective method
iii)Contingent assets
Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.
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