Definitions[1]

307 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
307
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Definitions[1]

  1. 1. CONTINGENCIES AND PROVISIONING IAS 37 DEFINITIONS Term Para Description Reference to IAS 37Contingent 10 It is:Liability (a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non- occurrence of one or more uncertain future not wholly within the control of the enterprise (b) a present obligation that arises from past events but not recognised because (i) it is not probable that an outflow of resources embodying economic benefit take place and (ii) the amount of obligation cannot be measured reliably.Contingent 10 It is possible asset that arises from past events and whoseAsset existence will be confirmed only by the occurrence or non- occurrence of one or more uncertain future event not wholly within the control of the enterprise.Provision 10 It is a liability of uncertain timing and amount.Liability 10 It is a present obligation of the enterprise arising from past events, settlement of which is expected to have outflow of resources embodying economic benefit.Legal 10 That derives from contract, legislation and other operationobligation of law.Constructive 10 That derives from enterprise’s action.obligation An enterprise by a statement may indicate its acceptance of an obligation. An enterprise has shown its acceptance of certain type of obligation by past practice.Onerous 10 A contract in which unavoidable cost exceed the economiccontract benefit to be received under it.Restructuring 10 A restructuring is a program that is planned and controlled by management, and materially changes either: a. the scope of a business undertaken by an entity; b. the manner in which that business is conducted.

×