AASB 137 summary - Examples PDF

Title	AASB 137 summary - Examples
Author	Quin Petes
Course	Financial Accounting 3
Institution	Queensland University of Technology
Pages	2
File Size	173.9 KB
File Type	PDF
Total Downloads	31
Total Views	169

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Summary

Examples...

Description

AASB 137 Provisions, Contingent Liabilities and Contingent Assets

Objective

To prescribe the criteria for recognition and measurement of provisions, contingent liabilities and contingent assets plus disclosure requirements When to recognise a provision? (See the decision tree on page 2)

Provisions

Present obligation Probable outflow (>50%) Reliable estimate

= liabilities of uncertain timing or amount

Present obligation from past event

Legal obligation

Constructive Obligation

One or more conditions are NOT met: contingent liability or nothing

outflow of benefits

Possible obligation

Present obligation

All conditions are met: recognise provisions

HOW TO MEASURE A PROVISION?

Best estimate of expenditure to settle obligation Outflow possible (not probable) or not reliably measurable

1 Contingent liabilities: DISCLOSURE REQUIRED

2...