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Question 1

provision definition

Answer 1

A provision is defined as a liability of uncertain timing or amount.

Question 2

Examples of provisions

Answer 2

Examples:
Provisions for:
losses on contracts,
obsolescence of inventories (stock),
costs related to closure of a division of the company.

Question 3

Non-current liability definition

Answer 3

A non-current liability is any liability that does not meet the definition of a current liability. Non-current liabilities are also described as long-term liabilities.

Question 4

Current liability criteria

Answer 4

A current liability is a liability, which satisfies any of the following criteria:
it is expected to be settled in the entity’s normal operating cycle;
it is held primarily for the purpose of being traded;
it is due to be settled within 12 months after the balance sheet date.

Question 5

NCL examples

Answer 5

Loan stock.
Debentures.
Bonds.
Bank borrowing and commercial paper.

Question 6

Issue of shares at the date of incorporation

Answer 6

When company first comes into existence:
it issues shares to the owners, who become shareholders.
Each share has a named value, which is called its nominal value (par value)