Provisions Flashcards
1
Q
What is a provision?
A
A liability of uncertain timing or amount
2
Q
What classifies as a provision?
A
- a legal or constructive obligation
- as a result of past events
- future economic (cash) outflow probable
- can be measured reliably (best estimate of future payment)
3
Q
What is a constructive obligation?
A
expectation that the company will pay
4
Q
What counts as probable?
A
> 50% probability
5
Q
TO FINISH
A
