In Respect to a Contingent Liability, AASB 137 Provisions, Contingent

question 6

Multiple Choice

In respect to a contingent liability, AASB 137 Provisions, Contingent Liabilities and Contingent Assets, requires disclosure of:

• A) an estimate of its financial effect.
• B) any increase in the contingent liability during the period.
• C) the carrying amount at the beginning and end of the period.
• D) an indication of the uncertainties about the amount and timing of expected outflows.

---

Definitions:

Accounting Principle

Fundamental guidelines or rules that form the basis for financial accounting and reporting practices, aimed at ensuring consistency and comparability.

Comparative Financial Statements

Financial reports that show the financial position, performance, and cash flows of a company across different periods side by side for comparison.

Accounting Changes

Alterations or updates made to accounting methods, estimates, or reporting entity, which can impact the financial statements of a business.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including the balance sheet and income statement.