A provision is recognised when it is more likely than not (greater than 50 per cent chance)
Question:
A provision is recognised when it is more likely than not (greater than 50 per cent chance) that an outflow of economic benefits will be needed to satisfy the obligation. This threshold established in IAS 37 represents a lower recognition threshold than is required by the equivalent US accounting standard. When considering a lawsuit in which the company is the defendant, can you see a potential problem having to adopt this lower threshold?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting For Decision Makers
ISBN: 9781292251257
9th Edition
Authors: Peter Atrill, Eddie McLaney
Question Posted: