Under IFRS, a Distinction Is Made Between Provisions and Contingencies

question 101

True/False

Under IFRS, a distinction is made between provisions and contingencies. Provisions are estimated liabilities that are reported on the statement of financial position whereas contingencies are not recognized as liabilities because of the uncertainty of the amount and timing of future payments.

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Definitions:

Diabetes

A metabolic disease characterized by high blood sugar levels over a prolonged period, which can lead to serious health problems if not managed properly.

Middle Age

typically refers to the period of life between young adulthood and old age, often considered to run from approximately 45 to 65 years of age.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured as an indicator of heart health.

Sexual-Reproductive System

The organs and structures in the body involved in reproduction and the functions related to it, including the genitals and associated glands and hormones.