A provision shall be recognized when except * it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. O the obligation must be settled to a specifically identifiable party. O a reliable estimate can be made of the amount of the obligation. O an entity has a present obligation (legal or constructive) as a result of past event.
Q: A provision should be recognized when: O a. Present obligation from a past event, outflow that will…
A: Provision means an amount set side now to be payable in future because of some past event and…
Q: one or more of the following statements are characteristics of assets: a. a probable future benefit…
A: Assets are those resources whether tangible or intangible, current or fixed have an economic value…
Q: Which of the following statements are true? When an employee has rendered service to an entity…
A: PFRS 19 talks about Recognition, Measurement, and Disclosure of Employee Benefits in financial…
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A: Small manufacturing companies have a small investment with its lower scope of business activities.…
Q: All changes in an entity's exonomic resources and claims to those resources result frim the entity's…
A: Changes in economic resources and claims: Changes in a reporting entity's economic resources and…
Q: According to PAS 23, borrowing costs are capitalized when * They relate directly to the…
A: Answer- Correct Option is Option A - They relate directly to the acquisition, construction, or…
Q: A. It is probable that an outflow of economic benefits will be required to settle an obligation B.…
A: Option D
Q: rder for an asset to be recognized in the financial statements, which of the following definition is…
A: The IASB ( International Accounting Standard Board) have the responsibility of developing IFRS ,…
Q: A currently maturing obligation of the entity is classified on the SFP as a?
A: Here SFP stands for statement of financial position. In a SFP different assets and liabilities are…
Q: Which one of the following situation where a performance obligation is satisfied over time ? a-…
A: As per IFRS15 Performance obligation is satisfied over time if any of the following conditions are…
Q: 6. A liability is recognized in the statement of comprehensive income when it is probable that an…
A: As per IASC framework, the liability is recognized in the financial statement when two conditions…
Q: How does the Conceptual Framework define an asset? Select one alternative A resource to which…
A: Introduction : The conceptual frameworks can be understood as the textual or graphical depiction of…
Q: When an obligation is subject to an obligation, the moment the condition is fulfilled, the…
A: The following statement is True... When an obligation is subject to an obligation, the moment the…
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: Which of the following is not part of the definition of an asset O a. Control of a resource O b.…
A: Asset can be defined as a resource controlled by the entity as a result of past events from which…
Q: If any contractual party breaches the obligation then what can be the course of specific action from…
A: Breach of contract: A breach of contract refers to a contract where two or more person comes into a…
Q: Th e assumption that an entity will continue to operate for the foreseeable future is called: A .…
A: There are two important underlying assumptions of financial statements: 1. Accrual basis 2. Going…
Q: Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? When it is…
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Q: According to IAS 37 - Provisions, Contingent Liabilities, and Contingent Assets choose two of the…
A: IAS 37 is accounting standard which deals and provides guidelines about provisions and the…
Q: 1. Which of the following is an essential characteristic for an obligation to qualify as a…
A: Note:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Which of the following does not require disclosure in the financial statements? choices: There is…
A: Disclosure in Financial statement Disclosure in the financial statement which is described as…
Q: one of the following is a definition of asset: a- a present economic resource controlled by the…
A: An asset is a resource with economic value that a firm controls in lieu of that it will provide a…
Q: Which of the following is not an essential characteristic of a liabili O All are essential…
A: Liabilities are those present obligations that are due to business and they could be short-term in…
Q: Which statement is incorrect in the measurement of a provision? * a. The risks and uncertainties…
A: Provisions are made when there is ambiguity about the relative price of discharge of these…
Q: In the final settlement, of the contingent consideration, which of the following statements is…
A: I. If the contingent consideration is classified as equity, the amount shall be measured upon…
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A: Financial asset is a form or type of assets under which rights are obtained to receive future…
Q: Short-term obligations are reported as noncurrent
A: Short-term obligations are liabilities to be settled within one accounting year.
Q: Are monetary obligations under a contract of surety intransmissible by their nature, by stipulation,…
A: Contract of surety relates to the contract of guarantee a contract is to perform the promise or…
Q: Which of the following does not require disclosure in the financial statements? There is a…
A: Contingent Liability is a possible obligation that depends on future uncertain events, or is a…
Q: _____ are the entity’s present obligations arising from past events, the settlement of which is…
A: Solution: Liabilities are the entity’s present obligations arising from past events, the settlement…
Q: Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the…
A: Revenue recognizes steps: Identify the contract with a customer Identify the performance…
Q: When it is probable that total contract costs will exceed total contract revenue, how shall it be…
A: Contract account is prepared when the work to be done take substantial time to make (generally more…
Q: In explaining the meaning of obligation in the definition of a liability, the Conceptual Framework…
A: when a liability arises to pay the amount than obligations will arise.
Q: allocated to the award credits when it fulfils its obligations in respect of the awards. a. All…
A: Correct option is c i.e 2nd statement is incorrect while the 1st statement is correct Explanation:
Q: Which of the following factors, if present, would indicate that a transaction is not a contribution?…
A:
Q: In the final settlement, of the contingent consideration, which of the following statements is…
A: I. Contingent consideration classified as equity the amount shall be measured upon settlement and…
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A: As per IFRS a liability is that the future payment of which results…
Q: Which of the following statement best defines an asset?
A: As question is MCQ type it will be answered with explanation.
Q: Under PFRS 15, in which of the following instances will the revenue from contracts with customers be…
A: Revenue is the amount which has been earned by the company during the period from the core…
Q: Identity the economic resource that has the ability to give economic benefits___________ a. Capital…
A: Asset is an economic resource that has the ability to give economic benefits... option D asset is…
Q: Any of the following criteria is considered satisfaction by an entity of performance obligation over…
A: As per IFRS 15, An entity transfers control of a good or service over time and, therefore, satisfies…
Q: 1. All of the following are components of the defined benefit cost except * unvested past service…
A: Solution Note Dear student as per the Q&A guideline we are required to answer the first question…
Q: __________ is defined in the Conceptual Framework as ‘a present obligation of the entity to transfer…
A: The accounting process includes the bookkeeping process which involves the journal entry of the…
Q: Which among the following suits best for Unearned revenue? a. Liability b. Expense c. Revenue d.…
A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…
Q: Th e assumption that an entity will continue to operate for the foreseeable future is called: B .…
A: The assumption that an entity will continue to operate for the foreseeable future is called Going…
Q: With reference to IAS 37, identify the correct statements from the following: I A contingent asset…
A: Contingent assets refer to the assets that are a result of past event and inflow from those assets…
Q: Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? A When the…
A: SOLUTION- PERFORMANCE OBLIGATION IS A PROMISE TO DELIVER THE GOODS OR SERVICES IN LIEU OF PAYMENT…
Q: document that facilitates
A: Solution:- Corporate charter is a legal document form creation of company. It is filed with…
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- In accordance with AASB 9, the recognition of a financial asset or financial liability will be influenced by considerations as to whether there is a contractual right to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable, or potentially unfavourable, to the entity. Explain what this requirement means.Which of the following is not a criterion that must be met for an item to be classified as a liability? A certain cash payment will occur in the future. A sacrifice will require the entity’s assets or services. There is a probable future sacrifice. There is a present obligation that results from a past transaction.With reference to IAS 37, identify the correct statements from the following: I. A contingent asset should be disclosed by note if an inflow of economic benefits is probable. II. Contingent assets must not be recognised in financial statements unless an inflow of economic benefits is virtually certain to arise. III. No disclosure of a contingent liability is required if the possibility of a transfer of economic benefits arising is remote. I and III only I, II and III II and III only I and II only
- With reference to IAS 37, identify the correct statements from the following: I. A contingent asset should be disclosed by note if an inflow of economic benefits is probable. II. Contingent assets must not be recognised in financial statements unless an inflow of economic benefits is virtually certain to arise. III. No disclosure of a contingent liability is required if the possibility of a transfer of economic benefits arising is remote. a- I, II and III b- I and II only c- II and III only d- I and III onlyA provision should be recognized when: O a. Present obligation from a past event, outflow that will be required to settle, and Reliable estimate can be made. O b. There is contingency. O C. Estimate is made and there is evidence readily available. O d. After the event has been follow through and there is a liability present.IDENTIFICATION 4. These are present obligations of an entity arising from past transactions, the settlement of which is expected to result in an outflow of the entity's resources. 5. It is one in which unavoidable costs of satisfying the obligations outweigh the economic benefits to be received.
- __________ is defined in the Conceptual Framework as ‘a present obligation of the entity to transfer an economic resource as a result of past events’. Select one alternative: Expense Income Asset LiabilityUnder PFRS 15, in which of the following instances will the revenue from contracts with customers be recognized at a point in time instead of over time? Group of answer choices When the entity’s performance creates or enhances an asset that the customer controls as the asset is created. When the customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs. When the entity has transferred physical possession and legal title to the asset to the customer When the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.Which of the following statement best defines an asset? a. An asset is a resource owned by the entity with a financial value b. An asset is resource controlled by the entity from which future economic benefits are expected to be generated c. An asset is a resource controlled by an entity because of past events d. An asset is a resource controlled by an entity as a result of past events from future economic benefits are expected to be generated
- Under - PFRS 15, when shall entity recognize revenue from contract with customers? Select the correct response: When or as the entity satisfies a performance obligation. When the entity becomes a party to a contract. When it is probable that future economic benefits will flow to the entity and the fair value of the revenue can be measured reliably. When the entity has already collected the reconsideration from revenue from contract with customers.Pursuant to the conceptual framework, for an item to be characterised as a liability the definition of liabilities must be applicable to the transaction or event, and the recognition criteria should also be satisfied. Applying the definition of liabilities, there are three key components in the definition of ‘liability’, these being:1. There must be an expected future disposition of economic benefits to other entities.2. There must be a present obligation.3. A past transaction or other event must have created the obligation.Required:Take any two examples of liabilities and test if they meet all three requirements.Which one of the following situation where a performance obligation is satisfied over time ? a- The entity's performance creates an asset that the customer controls as it is created b- The customer does not receive or consume the benefits provided by the entity's performance until the obligation is completely satisfied c- The entity does not have an enforceable right to payment for the performance that has been completed to date d- The entity's performance creates an asset which has an alternative use to the entity