Chapter 11 - Provisions Flashcards

1
Q

What are the 3 conditions needed for a provision to be recognized

A

Entity has a present obligation (legal or constructive) as a result of a past event

Probable that an outflow of resources embodying economic benefits will be required to settle the obligation

A reliable estimate can be made of the amount of the obligation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly