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Kitti-Talei Drodrolagi
on Dec 07, 2024

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AASB 137 requires provisions to be recognised when: I there has been a past event.
II an entity has a present obligation.
III the amount of the obligation can be reliably estimated.
IV it is possible that an outflow of resources will be required to settle the obligation.

A) I, II and III.
B) II, III and IV.
C) I, III and IV.
D) I, II and IV.

Present Obligation

A duty or responsibility that is expected to be settled in the future, recognized as a liability.

Past Event

An event or transaction that has occurred prior to the balance sheet date, impacting the financial position or performance of an entity.

Reliable Estimate

A calculation or assessment regarding figures or outcomes that is deemed dependable based on available evidence.

  • Understand the framework for classifying provisions, contingent liabilities, and contingent assets pursuant to AASB 137.
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RM
Robert MallerneeDec 14, 2024
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