2012 Technical Summary IAS 37 Provisions‚ Contingent Liabilities and Contingent Assets as issued at 1 January 2012. Includes IFRSs with an effective date after 1 January 2012 but not the IFRSs they will replace. This extract has been prepared by IFRS Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards. The objective of this Standard is to ensure that appropriate recognition criteria and measurement
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Table of Contents Question 01 (Answer) ........................................................................................................................... 2 Introduction to IFRS for SMEs ....................................................................................................... 2 Public Accountability...................................................................................................................... 2 Major areas covered in IFRS for SMEs.....................
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Case 9-4 Trueblood Case 09-4 Solution Case 9-4 How should NeedsSpace account for the two obligations noted as provisions in the lease agreement? ● Provision 1: “Lessor may require the lessee to perform general repairs and maintenance on the leased premises.” By entering the lease agreement‚ NeedsSpace (the lessee) becomes legally and contractually responsible for performing general repair and maintenance on the leased premises. Assuming that the lessee is required to make deposits to financially
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Question 1: At any of these dates‚ did Intel have a contingent liability as defined by SFAS #5? June 30: Intel has discovered the flaw No contingent liability‚ no disclosure. According to Intel‚ a series of tests has showed that an error would occur only once every nine billion random calculations‚ or every 27‚000 years for most users. Therefore‚ the chance that customers would encounter errors in calculations on their Pentium-driven PCs is slight and the event that customers would
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Acct 496 CH5 Assignment Kangkang Guo Q1. What is a provision‚ and when must a provision be recognized? Provision provides guidance for reporting liabilities of uncertain timing‚ amount‚ or existence. A provision should be recognized when: 1). The entity has a present obligation (legal or constructive) as a result of a past event. 2). It is probable (more likely than not) that an outflow of resources embodying economic events will be required to settle the obligation. 3). A reliable estimate of
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accounting standards. In this essay I will further explain the Statement of Principles for Financial Reporting on current UK financial reporting practice‚ by using examples on the topic of accounting for liabilities. In the Statement of Principles the ASB defined liabilities as follows: "Liabilities are obligations of an entity to transfer economic benefits as a result of past transactions or events" (paragraph 4.24). There are two types of
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• Consolidation journals are posted into the consolidation worksheet in “adjustment” columns as follows: Extract only Parent P Ltd. $’000 Subsidiary S Ltd. $’000 Adjustments DR Lecture 9 part b Consolidation: Wholly owned subsidiaries Prepared by Emma Holmes and Rick Newby Land Invt in S Ltd Receivables Cash 400 120 200 40 760 150 Share capital Retained earnings Creditors 500 160 100 760 100 20 50 170 Cons. Balances CR XX XX XX
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the following cases‚ (a) calculate the year-end liability and any associated expenses for the year (if any)‚ and (b) journalise the transaction. (1) CoinRich Ltd. issued 1000‚ $100 bonds but found that the bond interest rate was lower than market rates‚ and so received $98 cash for each. (a) Year-end liability and expenses for the year: Liabilities: $98000 Expenses: $0 (b) Journal entries: Dr Cash $98000 Dr Bond Discount (Contra-Liabilities) $2000 Cr Bond $100‚000 (2) Ten board game companies
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Provisions and Contingencies Scenario 1 Fact: Energy Inc. (Energy‚ or the Company)‚ which operates in the oil industry‚ is a U.S. subsidiary of a U.K. entity that prepares its financial statements in accordance with IFRS and U.S. GAAP. A draft law in a country where Energy operates in‚ which requires a cleanup of land already contaminated‚ will possibly be enacted shortly after the year-end. Issues: Should Energy recognize a provision‚ (i) in reporting under IFRSs‚ and (ii) in accordance
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furniture and fixtures Other assets Non-banking assets Total property & assets: LIABILITIES AND CAPITAL Liabilities: Borrowings from Bangladesh Bank‚ other banks‚ financial institutions and agents Deposits and other accounts: Current Accounts and other Accounts Bills Payable Savings Bank Deposits Fixed Deposits Short Term Deposits Deposit Under Special Scheme Foreign Currency Deposit Other liabilities Total Liabilities: Capital/Shareholders’ Equity Paid up Capital ( Ordinary shares of Tk. 10 each)
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