An obligation that is contingent on the occurrence of a future event should be reported in the statement of financial position as a liability if: a. The amount of the obligation can be reasonably estimated. b. The future event is likely to occur. c. The occurrence of the future event is at least reasonably possible and the amount is known d. The occurrence of the future event is probable and the amount can be reasonably estimated.

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: Determine when a liability can be classified as a noncurrent obligation.

A: Liabilities are obligations arising from past transactions and payable in assets or services in…

Q: What is meant by contingent Liability? How is it shown in final accounts?

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: A present obligation that is probable and for which the amount can be reliably estimated should…

A: The estimated expenses are the expenses which can be valued on the basis of past experiences or…

Q: How is present value related to the concept of a liability?

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: PROVIS A provision is an existing liability of uncertain timing uncertain amount. The essence of a…

A: Provision is an amount kept separately for some uncertain event that may happen in the future (Just…

Q: Distinguish between a current liability, such as accounts payable, and a provision.

A: Current liability:   Current liability refers to the debts of an organization. It is an obligation…

Q: resent obligation is not a contingent liability but shall be recognized as a provision when * a.…

A: Solution: Contingent liability is the liability which depends on the results of any future event…

Q: Distinguish between a determinable current liability anda contingent liability. Give two examples of…

A:

Q: When the amount of a contingent liability cannot be reasonably estimated but its likelihood is…

A: There are three types of contingent liabilities and their treatment   SR. NO. TYPE TREATMENT…

Q: The recognition of certain nonfinancial liabilities (e.g., contingencies and environmental…

A: Provision is recognized for uncertain amounts and timings. Therefore, the meaning of probable is…

Q: Under what conditions should a contingent liability berecorded?

A:

Q: A. It is probable that an outflow of economic benefits will be required to settle an obligation B.…

A: Option D

Q: Which of the following is not a condition necessary to exclude a short-term obligation from current…

A: SHORT-TEAM OBLIGATIONS: Debt, also called current liabilities, is a firm's financial obligations…

Q: A provision may be the equivalent of an estimated liability or a loss contingency that is accrued…

A: In this question we will understand that how a provision may be equivalent of an estimated liability…

Q: Under what conditions should a short-term obligation beexcluded from current liabilities?

A: Current liabilities: The debt obligations owed by a company to creditors and suppliers and are to be…

Q: What are the three elements of the definition for liabilities? List from the following items that…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which of the following statements is true concerning contingent liabilities?     a. Such liabilities…

A: A contingent liability is a liability that may occur depending on the outcome of an uncertain future…

Q: anticipated liability, which may or may not arise in future in known as a Current Liability b.…

A: ⇔Debts or obligations that must be paid within a year are referred to as current liabilities,…

Q: Pursuant to the conceptual framework, for an item to be characterised as a liability the definition…

A: Two Examples of Liabilities: 1) Trade payables: Satisfy all the three essential characteristics of…

Q: A contingent liability whose payment is generally probable

A: Contingent liability is the liability that may or may not happen in the future based on an event.…

Q: Contingent liabilities are obligations that may or may not materialize

A: Contingent liabilities are obligations that may or may not materialize will be explained:

Q: RUE OR FLASE? The effect of a lender agreeing to give the borrowing entity a grace period within…

A: Non Current Liability are long term liabilities where their payment is due  12 months  after the…

Q: The accrual of a contingent liability and the related loss should be recorded when the a. Loss…

A: Accrued liability are refer as when probability of occurrence of the loss contingency is probable…

Q: TRUE OR FALSE A liability can exist even if the party to whom the obligation is owed is not…

A: Liability:- A Liability is the amount owed from outsiders such as suppliers, creditors, investors,…

Q: What is/are the rule/rules (and the exceptions, if there be any) in case an object is lost or…

A: Fortuitous events are the events that are considered as the "act of God" because naturally, the act…

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: I. A provision is a present obligation which may either be legal or constructive. II. Even if a…

A: As per IAS 37 Provisions, Contingent Liabilities and Contingent Assets, A provision is a present…

Q: If a contingent liability is probable but estimable only within a range, what amount, if any, should…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Describe the terms of  Contingent Liabilities with examples.

A: Contingent liability: This is an uncertain obligation that might be incurred on a future date as a…

Q: Distinguish between a current liability and a long-termdebt.

A:

Q: Which of the following would most likely be classified as a current liability?

A: It can be defined as the liability that becomes due and is to be repaid with a span of 12 months or…

Q: For a liability to be recognised within the financial statements, it needs to be reasonably apparent…

A: As per IFRS  a liability is that the future payment of which results…

Q: Which of the following is most likely to be classified and reported as a current liability?

A: Liabilities are reported in the balance sheet of the company.

Q: Contingent liabilities must be recorded if: O The future event is probable and the amount owed can…

A: Contingent liability is the liability that occurs which depends on the future event that may or may…

Q: Whenever a period is designated in an obligation, the said period shall presumed to have been…

A: Ans. Whenever a period is designated in an obligation, the terms specified reflects the benefits and…

Q: Under IFRS, a provision is the same as: a.   a contingent liability. b.   an estimated liability. c.…

A:

Q: One of examples of contingent liability is an: * a. Obligations related to product warranties b.…

A: As per IFRS 37 provisions, contingent liabilities and Contingent assets. A provision is an present…

Q: n the case of a non-adjusting event, IAS 10 requires it to be: Select one alternative: disclosed…

A: Solution: In the case of a non-adjusting event, IAS 10 requires it to be "disclosed by way of note…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.