ACCA FA Syllabus F. Preparing Basic Financial Statements - Provision - Notes 3 / 5
Provisions, Contingent Liabilities and Contingent Assets (IAS 37)
provisions | |
| at 1 april 20x0 | x |
| increase in period | x |
| released in period | (x) |
| ---- | |
| at 31 march 20x1 | x |
| === |
Contingent liabilities
Contingent liabilities should not be recognized in financial statements but they should be disclosed, unless the possibility of any outflow is remote. The required disclosures are:
A brief description of the nature of the contingent liability;
An estimate of its financial effect;
An indication of the uncertainties that exist relating to the amount or timing of any outflow; and
Inflow of economic benefits is probable
Where an inflow of economic benefits is probable, an entity should disclose
a brief description of its nature; and where practicable
an estimate of the financial effect