Under AASB 137 Provisions, Contingent Liabilities and Contingent Assets, When

question 21

Multiple Choice

Under AASB 137 Provisions, Contingent Liabilities and Contingent Assets, when providing for a future event such as the clean-up of a construction site at the end of a long-term project, gains and other cash inflows that are expected to arise on the sale of assets related to the clean-up, must be:

• A) set-off against the provision for the clean-up.
• B) recognised as a deferred asset.
• C) measured separately of the provision.
• D) recognised directly in equity in the period in which the cash inflows arise.

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Definitions:

Abduction

The movement of a limb or other part away from the midline of the body or from another part.

Extremities

The terminal parts of the body—the arms, legs.

Center Line

A reference line that runs down the center of an object or space, commonly used in design and engineering to mark symmetry or alignment.

Aponeurosis

Extension of connective tissue beyond a muscle in round or flattened tendons; a means of insertion or origin of a flat muscle.