100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
IAS 37 Study Provisions, Contingent Liabilities and Contingent Assets Exam $10.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. IAS 37
  4.  
  5. IAS 37

Exam (elaborations)

IAS 37 Study Provisions, Contingent Liabilities and Contingent Assets Exam
 0 purchase
  • Course
  • IAS 37
  • Institution
  • IAS 37

IAS 37 Study Provisions, Contingent Liabilities and Contingent Assets Exam False - ANSWERSThis Standard shall be applied by all entities in accounting for provisions, contingent liabilities and contingent assets, except: (a) those not resulting from executory contracts, except where the contr...

[Show more]

Preview 3 out of 23  pages

Document information

  • September 7, 2024
  • 23
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • ias 37 study provisions contingent liabilities an

Written for

  • IAS 37
  • IAS 37

Seller

avatar-seller
Bensuda

Reviews received

Content preview

IAS 37 Study Provisions, Contingent
Liabilities and Contingent Assets Exam

False - ANSWERSThis Standard shall be applied by all entities in accounting for provisions, contingent
liabilities and contingent assets, except:

(a) those not resulting from executory contracts, except where the contract is onerous; and

(b) [deleted]

(c) those covered by another Standard.



par. 1



False - ANSWERSThis Standard does not apply to financial instruments (except guarantees) that are
within the scope of IFRS 9 Financial Instruments.



par. 2



False - ANSWERSExecutory contracts are contracts under which neither party has performed any of its
obligations or both parties have partially performed their obligations to an equal extent. This Standard
applies to executory contracts unless they are onerous.



par. 3



True - ANSWERSWhen another Standard deals with a specific type of provision, contingent liability or
contingent asset, an entity applies that Standard instead of this Standard. For example, some types of
provisions are addressed in Standards on:

(a) [deleted]

(b) income taxes (see IAS 12 Income Taxes);

(c) leases (see IFRS 16 Leases). However, this Standard applies to any lease that becomes onerous before
the commencement date of the lease as defined in IFRS 16. This Standard also applies to short-term

,leases and leases for which the underlying asset is of low value accounted for in accordance with
paragraph 6 of IFRS 16 and that have become onerous;

(d) employee benefits (see IAS 19 Employee Benefits);

(e) insurance contracts and other contracts within the scope of IFRS 17 Insurance Contracts;

(f) contingent consideration of an acquirer in a business combination (see IFRS 3 Business Combinations);
and

(g) revenue from contracts with customers (see IFRS 15 Revenue from Contracts with Customers).
However, as IFRS 15 contains no specific requirements to address contracts with customers that are, or
have become, onerous, this Standard applies to such cases.



par. 5



False - ANSWERSThis Standard defines provisions as liabilities of uncertain timing or amount. In some
countries the term 'provision' is also used in the context of items such as depreciation, impairment of
assets and doubtful debts: these are adjustments to the carrying amounts of assets and are addressed in
this Standard.



par. 7



True - ANSWERSOther Standards specify whether expenditures are treated as assets or as expenses.
These issues are not addressed in this Standard. Accordingly, this Standard neither prohibits nor requires
capitalisation of the costs recognised when a provision is made.



par. 8



False - ANSWERSThis Standard does not apply to provisions for restructurings (including discontinued
operations). When a restructuring meets the definition of a discontinued operation, additional
disclosures may be required by IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.



par 9



False - ANSWERSA provision is a liability of certain timing or amount.

, par. 10



True - ANSWERSA liability is a present obligation of the entity arising from past events, the settlement of
which is expected to result in an outflow from the entity of resources embodying economic benefits.



par. 10



True - ANSWERSAn obligating event is an event that creates a legal or constructive obligation that results
in an entity having no realistic alternative to settling that obligation.



par. 10



True - ANSWERSA legal obligation is an obligation that derives from:

(a) a contract (through its explicit or implicit terms);

(b) legislation; or

(c) other operation of law.



True - ANSWERSA constructive obligation is an obligation that derives from an entity's actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current
statement, the entity has indicated to other parties that it will accept certain responsibilities; and

(b) as a result, the entity has created a valid expectation on the part of those other parties that it will
discharge those responsibilities.



True - ANSWERSA contingent liability is:

(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 events not wholly within the control of
the entity; or

(b) a present obligation that arises from past events but is not recognised because:

(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or

(ii) the amount of the obligation cannot be measured with sufficient reliability.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Bensuda. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$10.49
  • (0)
Add to cart
Added