The ordinance of TCI requires businesses to install smoking rooms to its factories by 30 December 2020. The entity has not installed the smoking rooms. Should a provision be recognised at the end of the reporting period? a) 31 December 2019 b) 31 December 2020

The ordinance of TCI requires businesses to install smoking rooms to its factories by 30 December 2020. The entity has not installed the smoking rooms. Should a provision be recognised at the end of the reporting period? a) 31 December 2019 b) 31 December 2020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The ordinance of TCI requires businesses to install smoking rooms to its factories by 30 December 2020. The entity has not installed the smoking rooms.

Should a provision be recognised at the end of the reporting period?

a) 31 December 2019

b) 31 December 2020

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