Page 209 - F2 Integrated Workbook STUDENT 2019
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Provisions, contingent liabilities and contingent assets
Disclosure – contingent liabilities and
assets
3.1 Accounting for contingent liabilities and assets
Per IAS 37 Provisions, contingent liabilities and contingent assets, contingent
liabilities and contingent assets are NOT recognised in the financial statements
No double entry is posted.
They are:
DISCLOSED in the notes to the financial statements.
What is a contingent liability?
A contingent liability is an uncertain liability with:
a POSSIBLE chance of outflows of economic benefit.
What is a contingent asset?
A contingent asset is an uncertain asset with:
a PROBABLE chance of inflows of economic benefit.
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