PAS 37

An obligation arising from a contract, legislation or other operation of law.

• Legal Obligation

• Constructive obligation

• Provision

• Present Obligation

A liability of uncertain timing or uncertain amount.

• Past Event

• Provision

• Loss Contingency

• Future Event

The past event that leads to a present obligation is called an?

• Past Event

• Legal Obligation

• Obligating Event

• Present Obligation

Provision may also be equivalent of an estimated liability or a loss contingency that is accrued because it is?

• Probable

• Measurable

• Obtainable

• Both Measurable and Obtainable

An obligation that is derived from an entity’s actions where it will accept certain responsibilities by reason of an established pattern of past practice

• Legal Obligation

• Present Obligation

• Constructive Obligation

• Future Event

Provision shall be recognized for future operating losses.

• TRUE

• FALSE

Pas 37, paragraph 10 defines a contingent liability as a present obligation that is either probable or measurable but not both.

• TRUE

• FALSE

Which of the following is not an example of a provision?

• Warranties

• Guarantees

• Receipts

How does changes in provision should be reviewed?

• At every end of the reporting period

• At the start of the new reporting period

• If the accountant feel to do so

• No changes in provision

A contingent asset can be the following, except:

• Cannot be recognized because it may result to

  recognition of income

• Virtually certain

• Possible asset arises from the past event

• Not wholly within the control of the entity