Question
Entity Y plans the conversion to IFRS with a reporting date of December 31, 2010, and a transition date of January 1, 2009. During 2006,
Entity Y plans the conversion to IFRS with a reporting date of December 31, 2010, and a transition date of January 1, 2009. During 2006, a lawsuit was filed. The filing party claims to have been injured by one of Entity Y's products and wants a compensation payment of 5,000. As of December 31, 2008, Entity Y's lawyer estimated a risk of 1,000, and Entity Y recognized a provision in its local GAAP financial statements in the same amount. During 2010, the judge decided that compensation payment will be 4,000. What is the correct amount for the provision in the IFRS opening balance sheet?
1,000
5,000
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Statistical Models And Analysis In Auditing
Authors: National Research Council, Division On Engineering And Physical Sciences, And Applications Commission On Physical Sciences, Mathematics, Board On Mathematical Sciences, Committee On Applied And Theoretical Statistics, Panel On Nonstandard Mixtures Of Distributions
1st Edition
