A Briefly Define a 'Contingency

question 4

Essay

a Briefly define a 'contingency'.
b What are the main requirements of NZ IAS 37 in regard to disclosure of contingencies,and why are they disclosed?

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Definitions:

Value-Added Tax

A type of consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.

Production

The method of blending different tangible and intangible inputs (like designs and expertise) to create products for use.

Administrative Burden

A term that refers to the costs and regulatory obligations businesses face when complying with government rules and procedures.

Tax Forms

Official documents used to report financial information to the government for tax purposes, including income, expenses, and taxes owed.