Scene1.
The reasons which makes the provision different from the other types of current liabilities reported on a company’s balance sheet.
Scene2.
The way in which a provision under IFRS and a contingency under U.S GAAP differ.
The reason that makes provisions to be separately identified rather than being included with other accrued liability.
Scene3.
The probabilities assigned to each category under U.S GAAP and IFRS.
The reason why the probabilities are not used in the standards rather than the expressions that are subject to interpretation.
Whether the guidance provided for loss contingencies under U.S GAAP to be rules based or not and is IFRS more principle based than the U.S GAAP guidance.
Scene 4.
The comparison between the view regarding loss contingency and if one view is more liberal than the other.
Scene 5.
The standard under which there is more disclosure in the financial statements.
Scene 6.
Whether the concept of ‘conservatism’ be considered while determining a contingency.
Whether the standards at odds with the concept of conservatism because they do not require contingent liabilities to be recognized unless they are probable and can be estimated or not.
Whether the concept of conservatism is a guiding principle for developing accounting standards or not.
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Chapter 13 Solutions
Intermediate Accounting
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