Chapter 8 - Accounting For Liabilities

Question 1

What does IAS 12 cover?

Answer 1

Income tax accounts and how to deal with any under or over provision.

Due to laws being very complex there are often adjustments that lead to an over or under adjustment.

Question 2

IFRS 16

Answer 2

How to account for leases

Leasing is the means by which a company obtains the right to use non current assets such as machinery

Question 3

IAS 37

Answer 3

Provisions, contingent liabilities and contingent assets

States that a provision is a liability of uncertain timing or amount