Chpt 11 Provisions & Deferred Tax

Question 1

Provision movement in SPL

Increase/create provision

Answer 1

Dr expense (SPL)
Cr provision (SFP) NCL or CL

Question 2

Provision movement in SPL

Decrease/remove provision

Answer 2

Dr provision

Cr expense

Question 3

Decommissioning costs

Answer 3

Cr provision

Dr asset

Question 4

Revalue PPE

Answer 4

Dr revaluation reserve

Cr deferred tax provision

Question 5

Normally recognise deferred tax

Answer 5

Dr tax expense

Cr deferred tax provision

Question 6

When do we recognise provision?

Answer 6

When all met:
Present obligation of past event
Probable outflow resources
Reliable estimate of amount