Page 177 - F3 -FA Integrated Workbook STUDENT 2018-19

Payables, provisions and contingent liabilities

Disclosure

IAS 37 disclosure requirements:

 When there is a requirement to provide for a contingent liability, the liability is
reflected in the financial statements, but called a provision in order to highlight
the uncertainty relating to it.

 The movement in the provision is recorded in the financial statements each
year.

 When disclosure is made by note, the note should state the nature of the
contingency, the uncertain factors that may affect the future outcome, and an
estimate of the financial effect.

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