Question

In: Accounting

Per IFRS, a contingent item with a probability of 65% would be considered to be: Select...

Per IFRS, a contingent item with a probability of 65% would be considered to be:

Select one:

a. Probable

b. More than probable

c. A provision

d. Less than probable

Solutions

Expert Solution

Answer: Option A - Probable
A contingent item with a probability of 65% would be considered as Probable
In terms of likelihood of an event if the probability is between 60% to 85% then it
considered as probable
Additional Explaination for Option c)
A provision can be made as per IFRS if 3 conditions are satisfied
i) Present obligation from Past Event
ii) Outflow of economic benefit is probable
iii) Amount can be reliabily estimated
In this question since the data regarding these conditions is not mentioned therefore
anything cannot be commented regarding making of a provision for Contingent item

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

Which of the following would be considered a personal contingent liability for a guarantor of a...
Which of the following would be considered a personal contingent liability for a guarantor of a business loan? A) The individual has subordinated debt to the business. B) The individual has guaranteed another loan to an unrelated business. C) The individual is considering borrowing to purchase real estate. D) The individual is engaged to be married.
Which of the following would be considered a personal contingent liability for a guarantor of a...
Which of the following would be considered a personal contingent liability for a guarantor of a business loan? A) The individual has subordinated debt to the business. B) The individual has guaranteed another loan to an unrelated business. C) The individual is considering borrowing to purchase real estate. D) The individual is engaged to be married.
Which one of the following would be considered a contingent liability? One Answer A. A company...
Which one of the following would be considered a contingent liability? One Answer A. A company owes $12,000 on inventories purchased on credit. B. A company estimates that it will most likely have to pay $15,000 to the EPA for a chemical spill. C. A company has access to a line of credit with a bank in the amount of $23,000. D. A company believes that it might lose a lawsuit and damages could be $13,000. E. None of the...
Which item would be considered a material cultural characteristic
Which item would be considered a material cultural characteristic
Indicate which item could be included in compiling IFRS financial statements: Select one: a. Combining debt...
Indicate which item could be included in compiling IFRS financial statements: Select one: a. Combining debt and equity characteristics of compound financial instruments, but not netting Bonds Payable and Bonds Issue Costs. b. Using the Completed Contract method for Construction Accounting, but not combining debt and equity characteristics of compound financial instruments. c. Both separating debt and equity characteristics of compound financial instruments and netting Bonds Payable and Bond Issue Costs. d. Neither combining debt and equity characteristics of compound...
Can you think of an item for a project that would be considered a positive risk?...
Can you think of an item for a project that would be considered a positive risk? explain why and give examples
What item would be considered accounting profit for Apple? Would economic profit be higher or lower...
What item would be considered accounting profit for Apple? Would economic profit be higher or lower than this accounting profit for Apple?
Why would consumer spending be affected by mortgage rates? Isn’t housing considered an investment item, not...
Why would consumer spending be affected by mortgage rates? Isn’t housing considered an investment item, not a consumption item?
When speed limits were increased from 55 to 65 miles per hour a news item appeared...
When speed limits were increased from 55 to 65 miles per hour a news item appeared in the Chicago Tribune, which showed that deaths on Illinois highways increased since the speed limits were raised to 65 mph. (a) Assuming that the faster speed caused the deaths, does this prove that cost-benefit analysis was not used in the decision to return to the 65 mph speed limit. (b) What is being implied if we do not go back to the 55...
(a) The probability of a defective item produced by a machine is 0.20. Find the probability...
(a) The probability of a defective item produced by a machine is 0.20. Find the probability that at least 3 of the 5 next items produced by a machine will be in this defective. (b) Analyze skewness of the following data with formula and diagram. 1,2,5,2,3,1,3,1.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT