BÀI GIẢNG kế TOÁN QUỐC tế chapter 13 provisions and contingencies

Chapter 13 PROVISIONS AND CONTINGENCIES Learning Objectives IAS 37 IAS 37 •Provision A liability of uncertain timing or amount •Liability An obligation of an entity to transfer economic benefits as a result of past transactions or events IAS 37 Constructive obligation • An obligation that derives from an entity’s actions where: • By an established pattern of past practice, published policies or a sufficiently specific current statement the entity has indicated to other parties that it will accept certain responsibilities • As a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities IAS 37 •Important The amount recognised as a provision should be the best estimate of the expenditure required to settle that present obligation •Restructuring A programme planned and controlled by management Materially changes scope of business and/or the way the business is conducted IAS 37 IAS 37 • Note Restructuring is not usually triggered by a management decision alone Other events, such as negotiations with employee representatives, need to take place IAS 37 Contingent Liability • A possible obligation that arises from past events, whose existence will be confirmed by the occurrence or non-occurrence of future events not wholly in the entity’s control • A present obligation not recognised because: – It is not probable that settlement of the obligation will be required – The amount cannot be measured IAS 37 Contingent Asset A possible asset that arises from past events and whose existence will be confirmed by the occurrence of one or more uncertain future events not wholly within the entity’s control ... settle that present obligation •Restructuring A programme planned and controlled by management Materially changes scope of business and/ or the way the business is conducted IAS 37 IAS 37 • Note Restructuring... amount cannot be measured IAS 37 Contingent Asset A possible asset that arises from past events and whose existence will be confirmed by the occurrence of one or more uncertain future events not