Accounting · Provisions and Contingencies
Identify whether the following statements are true or false in accordance with IAS 37 (Provisions, Contingent Liabilities and Contingent Assets): 1. Provisions should be made for both constructive and legal obligations. 2. Discounting may be used when estimating the amount of a provision. 3. A restructuring provision must include the estimated costs of retraining or relocating continuing staff. 4. A restructuring provision may only be made when a company has a detailed plan for the restructuring and has communicated to interested parties a firm intention to carry it out.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11-False; 2-True; 3-True; 4-False
- 21-False; 2-False; 3-False; 4-True
- 31-True; 2-False; 3-True; 4-True
- 41-True; 2-True; 3-False; 4-True✓
Correct answer
1-True; 2-True; 3-False; 4-True
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