ACCA FR ^F7 Classroom - Syllabus B7. Provisions And Events After The Reporting Period ^{10 / 15}

a) Explain why an accounting standard on provisions is necessary.

b) Distinguish between legal and constructive obligations.

c) State when provisions may and may not be made and demonstrate how they should be accounted for.

d) Explain how provisions should be measured.

e) Define contingent assets and liabilities and describe their accounting treatment and required disclosures.

f) Identify and account for:
i) warranties/guarantees
ii) onerous contracts
iii) environmental and similar provisions
iv) provisions for future repairs or refurbishments.

g) Events after the reporting period
i) distinguish between and account for adjusting and non- adjusting events after the reporting period
ii) Identify items requiring separate disclosure, including their accounting treatment and required disclosures