Provisions are recognized if it is probable that an outflow of resources will be required to settle the obligation.Group of answer choicesTrueFalse

AASB 137/IAS 37 requires provisions to be recognised when:I there has been a past event.II an entity has a present obligation.III the amount of the obligation can be reliably estimated.IV it is possible that an outflow of resources will be required to settle the obligation. Reading required            Learning objective 9.4 on page 255Group of answer choicesI, II and IV.I, III and IV.I, II and III.II, III and IV.

"A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits" is a definition of:Group of answer choicesexpenses.equity.income.liabilities.

In availability of funds, anycertification for a non-existent or fictitious obligation shall be accepted.Select one:TrueFalse

a. Probable outflow of economic benefits d. Present obligation as a result of past events b. Transfer of an economic resource c. Obligation

A mandated issue has potential legal consequences.Group of answer choicesTrueFalse