Podcast
Questions and Answers
Which one of the following is a requirement for recognizing a provision?
Which one of the following is a requirement for recognizing a provision?
- The provision must reflect future events that may affect the amount required to settle an obligation (correct)
- The provision must reflect past events that have affected the amount required to settle an obligation
- The provision must be based on subjective evidence
- The provision must be based on current technology
What is the basis for determining the amount recognized in a provision?
What is the basis for determining the amount recognized in a provision?
- The expectation of technically qualified, objective observers (correct)
- The expectation of the entity's customers
- The entity's subjective opinion
- The entity's belief
What is an example of a cost reduction that can be included in a provision?
What is an example of a cost reduction that can be included in a provision?
- Expected cost reductions associated with future changes in technology
- Expected cost reductions associated with the entity's subjective opinion
- Expected cost reductions associated with increased experience in applying existing technology (correct)
- Expected cost reductions associated with the entity's belief
Which actuarial technique is used to determine the deficit or surplus of a defined benefit plan?
Which actuarial technique is used to determine the deficit or surplus of a defined benefit plan?
What is the purpose of discounting the benefit in a defined benefit plan?
What is the purpose of discounting the benefit in a defined benefit plan?
Which of the following is an example of a long-term employee benefit?
Which of the following is an example of a long-term employee benefit?
When should an entity recognize a liability and expense for termination benefits?
When should an entity recognize a liability and expense for termination benefits?
Which type of post-employment benefit plan is determined by the amount of contributions paid by an entity to a post-employment benefit plan or to an insurance company?
Which type of post-employment benefit plan is determined by the amount of contributions paid by an entity to a post-employment benefit plan or to an insurance company?
When an employee has rendered service to an entity during a period, the entity shall recognize the contribution payable to a defined contribution plan in exchange for that service.
When an employee has rendered service to an entity during a period, the entity shall recognize the contribution payable to a defined contribution plan in exchange for that service.
Under which type of post-employment benefit plan does the entity's obligation include providing agreed benefits to current and former employees?
Under which type of post-employment benefit plan does the entity's obligation include providing agreed benefits to current and former employees?
What type of risk falls on the entity under defined benefit plans?
What type of risk falls on the entity under defined benefit plans?
According to IAS 37, when should a provision be reversed?
According to IAS 37, when should a provision be reversed?
When should a provision be used?
When should a provision be used?
When is a contract considered onerous?
When is a contract considered onerous?
What should be recognized before establishing a separate provision for an onerous contract?
What should be recognized before establishing a separate provision for an onerous contract?
According to Italian GAAP, when should a provision be accrued?
According to Italian GAAP, when should a provision be accrued?
What is the value of the provision according to Italian law?
What is the value of the provision according to Italian law?
Why is there a difference in the accounting treatment of provisions between Italian GAAP and other legislations?
Why is there a difference in the accounting treatment of provisions between Italian GAAP and other legislations?
Which of the following is an example of a provision being recognized for the best estimate of the costs of clean-up?
Which of the following is an example of a provision being recognized for the best estimate of the costs of clean-up?
When is a provision recognized for a present obligation as a result of a past obligating event?
When is a provision recognized for a present obligation as a result of a past obligating event?
In which situation is a provision not recognized and the matter disclosed as a contingent liability?
In which situation is a provision not recognized and the matter disclosed as a contingent liability?
What is the expected value of the cost of repairs for warranty obligations?
What is the expected value of the cost of repairs for warranty obligations?
According to IAS 19, what are short-term employee benefits?
According to IAS 19, what are short-term employee benefits?
According to OIC 31, how is the occurrence of a probable event defined?
According to OIC 31, how is the occurrence of a probable event defined?
Which type of employee benefits are payable after the completion of employment?
Which type of employee benefits are payable after the completion of employment?
What is the main difference between IAS 37 and OIC 31 regarding the actualization of the amount when a provision is relevant?
What is the main difference between IAS 37 and OIC 31 regarding the actualization of the amount when a provision is relevant?
