Which statement is incorrect in the measurement of a provision? * a. The risks and uncertainties that inevitably surround many events and circumstances shall be taken into account in reaching the best estimate of a provision b. Where the effect of the time value of money is material, the amount of a provision shall be the present value of the expenditure expected to settle the obligation c. Future events that may affect the amount required to settle the obligation shall be reflected in the amount of the provision where there is sufficient objective evidence that the future events will occur d. Gains from expected disposal of assets shall be taken into account in measuring a provision

Q: What disclosure is made if a loss contingency is reasonably possible?

A: Contingent Liability: Contingent liability is one form of liability that arises based on a…

Q: Match the following challenges in revenue recognition with their corresponding aspec A. Determining…

A: Accounting Concepts -The phrase "accounting concepts" refers to fundamental guidelines,…

Q: Which are the assumptions will be added as we discuss the various approaches to the valuation of the…

A: REIT stands for a real estate investment property. The investment is treated as investment in stocks…

Q: Bad debts under the allowance method are A reserve created to meet expected next period expense. An…

A: To accurately answer the question about bad debts under the allowance method, we need to understand…

Q: Which of the following statements is not true about provisions? a. Examples of provisions include…

A: The amount that the business has set aside for anticipated future losses and uncertainties for which…

Q: For most long-term liabilities, an important consideration is that they are properly authorized.…

A: The long term liability is reported as a long term because they covers many years and the majority…

Q: Explain Options to Report Liabilities at Fair Value.

A: Introduction FASB introduces Fair Value Options to report assets and liabilities in fair value,…

Q: If the value of an item can be measured and reasonably determined, this item can be recognized in…

A: An item can be recognized in the financial statement if it satisfies certain specified condition.…

Q: When should a contingent liability be recognized and reported on the financial statements?  A.…

A: Contingent liability: A liability can occur on future uncertain events.

Q: Obligations for which the amount of the future sacrifice is so uncertain that it cannot be measured…

A: Obligations for which the amount of the future sacrifice is so uncertain that it cannot be measured…

Q: What disclosures are required for remote likelihood of losses?

A: Likelihood of losses means chance of occuring loss in some future events of the business. Likelihood…

Q: How do you think the miss statement of fines will impact the important statement and balance sheet.

A: Given: The impact on income statement and balance sheet due to misstatements of funds.

Q: Which of the following is not an insurance management tool? Group of answer choices deductibles.…

A: Insurance management: Insurance Management is the administration of all insurance requirements, both…

Q: With reference to IAS 37, identify the correct statements from the following:  I.     A contingent…

A: Contingent Liabilities In simple term contingent liabilities means unexpected loss or expenses…

Q: 17. Gain contingencies should a. be accrued if they are probable and can be reasonably estimated…

A: Gain Contingencies A gain contingency is an uncertain situation which will be resolved within the…

Q: Which of the following cases would result in an actuarial loss? Projected benefit obligation…

A: As per IFRS, Actuarial gains and losses are changes in the present value of the defined benefit…

Q: Pursuant to the conceptual framework, for an item to be characterised as a liability the definition…

A: Two Examples of Liabilities: 1) Trade payables: Satisfy all the three essential characteristics of…

Q: Which of the following statements regarding liabilities is true? Liabilities arise through a…

A: Introduction:- Liability is someone legally responsible to pay another person or company.…

Q: Contingent liabilities are obligations that may or may not materialize

A: Contingent liabilities are obligations that may or may not materialize will be explained:

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.