Under Current IFRS Requirements, a Provision Is Recognized If

question 84

Multiple Choice

Under current IFRS requirements, a provision is recognized if

• A) the amount of the loss can be reliably measured and it is probable that an asset has been impaired or a liability incurred as of the financial statement date.
• B) the amount of the loss cannot be measured reliably but it is probable that an asset has been impaired or a liability incurred as of the financial statement date.
• C) it relates to a lawsuit commenced after the statement of financial position date, the outcome of which can be reliably measured.
• D) it relates to an asset recognized as impaired after the statement of financial position date.

Understand the concept of cost of goods available for sale and how it's computed for a manufacturing company.

Recognize similarities and differences between financial and managerial accounting.

Identify examples of period costs versus product costs in a manufacturing setting.

Prepare and interpret manufacturing cost data and its impact on inventory accounts and income statements.

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Definitions:

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