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
Summary IAS 37 and IAS 10 Provisions, contingencies and events after the reporting date R50,00   Add to cart
Quickly navigate to
Preview
  2.  
  3. North-West University (NWU)
  4.  
  5. Chartered accountancy (ACCC272)

Summary

Summary IAS 37 and IAS 10 Provisions, contingencies and events after the reporting date
 10 views  0 purchase

A summary of the types of liabilities, recognition criteria, measurement and disclosure of contingent assets and liabilities according to IAS 37 and how to treat events after reporting date according to IAS 10

Preview 1 out of 3  pages

Document information

  • No
  • Chapter 18
  • August 13, 2024
  • 3
  • 2024/2025
  • Summary

Subjects

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (17)

Written for

All documents for this subject (8)

Seller

avatar-seller
AmiAccounting

Content preview

Study unit 9
IAS 37 – Provisions, contingent liabilities and contingent assets

Liabilities

Pure liability – Contingent liability – Provision –
A present obligation of the entity arising 2 types: A liability of uncertain
from past events, the settlement of - Does not meet the definition of a timing and/or amount
which is expected to result in an outflow liability
from the entity of resources embodying - Does not meet the recognition
economic benefits. criteria of a liability



• A present obligation • A possible obligation
• From past events • From past events
• It is not probable that settlement will • Existence will only be confirmed by
lead to outflow of economic benefits uncertain events
and/or • Not within control of the entity
• Amount cannot be measured reliably

Present obligation Past even creating a  Legal obligation – enforceable by law
present obligation  Constructive obligation – creates valid expectation
Obligating event Past even that  Legal – exists independently from future actions
creates an obligation (walk-away test); always involved a 3rd party
that the entity has no  Constructive – derives from actions of entity whereby
realistic alternative an established pattern (past practices, policy,
to settling statements) indicated to other parties & entity creates
valid expectation

Recognition criteria of IAS 37:
Probability and reliable estimate:
 Probable inflow of economic benefit:
 Provision: more likely to occur
than not to occur
 Contingent: more likely that it
will not occur


Probable: >50%
Possible: 50/50
Highly possible: >50%; <100%
Unlikely: <50%

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 EFT, 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 this summary from?

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

Will I be stuck with a subscription?

No, you only buy this summary for R50,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

72841 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R50,00
  • (0)
  Buy now