Recognition of Provisions: criteria for recognising and measuring provisions and contingent liabilities in financial statements. The Standard requires recognition of a provision only when a present obligation exists from a past event, an outflow of resources embodying economic benefits is probable (more likely than not), and a reliable estimate of the obligation can be made; contingent liabilities and contingent assets are not recognised, with contingent liabilities disclosed unless an outflow is remote and contingent assets disclosed only when realisation is probable and recognised when virtual certainty exists. Measurement uses the best estimate, reflects risks and future events where supported by objective evidence, and generally excludes discounting except for specified decommissioning and restoration liabilities.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Recognition of Provisions: criteria for recognising and measuring provisions and contingent liabilities in financial statements.
The Standard requires recognition of a provision only when a present obligation exists from a past event, an outflow of resources embodying economic benefits is probable (more likely than not), and a reliable estimate of the obligation can be made; contingent liabilities and contingent assets are not recognised, with contingent liabilities disclosed unless an outflow is remote and contingent assets disclosed only when realisation is probable and recognised when virtual certainty exists. Measurement uses the best estimate, reflects risks and future events where supported by objective evidence, and generally excludes discounting except for specified decommissioning and restoration liabilities.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI OCR ✕
of 
TaxTMI 
TaxTMI 
