Note 32 lists “other provisions.”a. Do the beginning and ending balances of total provisions and retirement benefitsshown in Note 32 for fiscal 2015 tie to the balance sheet? By how much has thetotal amount of AF’s “other provisions” increased or decreased during fiscal 2015?b. Write journal entries for the following changes in the litigation provision thatoccurred during fiscal 2015, assuming any amounts recorded on the incomestatement are recorded as “provision expense” and any use of provisions is paid forin cash. In each case, provide a brief explanation of the event your journal entry iscapturing.i. New provision.ii. Use of provision.c. Is AF’s treatment of litigation provision under IFRS similar to how it would betreated under U.S. GAAP?
Note 32 lists “other provisions.”
a. Do the beginning and ending balances of total provisions and retirement benefits
shown in Note 32 for fiscal 2015 tie to the balance sheet? By how much has the
total amount of AF’s “other provisions” increased or decreased during fiscal 2015?
b. Write journal entries for the following changes in the litigation provision that
occurred during fiscal 2015, assuming any amounts recorded on the income
statement are recorded as “provision expense” and any use of provisions is paid for
in cash. In each case, provide a brief explanation of the event your
capturing.
i. New provision.
ii. Use of provision.
c. Is AF’s treatment of litigation provision under IFRS similar to how it would be
treated under U.S. GAAP?
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