IAS 37 and IAS 10

Question 1

If there is a virtually certain degree of an inflow/outflow, what accounting treatment would you use?

Answer 1

Recognise asset/liability

Question 2

If there is a probably degree of an inflow/outflow, what accounting treatment would you use?

Answer 2

Recognise a provision/disclose a contingent asset

Question 3

If there is a possible degree of an inflow/outflow, what accounting treatment would you use?

Answer 3

Disclose a contingent liability, ignore if an inflow

Question 4

If there is a remote degree of an inflow/outflow, what accounting treatment would you use?

Answer 4

Ignore both

Question 5

How is a contingent asset/liability disclosed in the financial statements?

Answer 5

A note

Question 6

Is the destruction of a major production plant by fire after the reporting date an adjusting or non-adjusting event?

Answer 6

Non-adjusting event

Question 7

Is an irrecoverable debt after the reporting date an adjusting or non-adjusting event?

Answer 7

An adjusting event

Question 8

How are non-adjusting events disclosed in the financial statements?

Answer 8

A note

Question 9

Are equity dividends proposed before the reporting date shown in liabilities?

Answer 9

No