Question
In accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets , which of the following is considered a contingent liability? 1. Guarantee of an
In accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets, which of the following is considered a contingent liability?
1. Guarantee of an associate's bank overdraft where the associate has declared bankruptcy
2. Best estimate of likely claims for warranty by customers.
3. Guarantee provided by the parent entity on behalf of a solvent subsidiary
4. Settlement of a legal case where the company is likely to be held liable for damages in court
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
