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Questions and Answers
What is the definition of a contingent liability according to NZ IAS 37 Para 22?
What is the definition of a contingent liability according to NZ IAS 37 Para 22?
- A present obligation that arises from past events but does not meet recognition criteria
- A possible obligation that arises from future events
- A present obligation that arises from future events
- A possible obligation that arises from past events (correct)
Which of the following is not a characteristic of a contingent liability?
Which of the following is not a characteristic of a contingent liability?
- Existence confirmed by uncertain future events
- Arising from past events
- Possible obligation
- Arising from future events (correct)
What is the difference between a contingent liability and a present obligation that does not meet recognition criteria?
What is the difference between a contingent liability and a present obligation that does not meet recognition criteria?
- Contingent liability arises from future events while present obligation arises from past events
- Contingent liability is probable while present obligation is not
- Contingent liability meets recognition criteria while present obligation does not
- Contingent liability arises from past events while present obligation does not meet recognition criteria (correct)
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