On the Reporting of Liabilities Where a Range of Values

question 28

Multiple Choice

On the reporting of liabilities where a range of values exists as a possible outcome, IFRS requires which of the following points to be recorded as a provision, if the outcome is probable?

• A) Low end of the range.
• B) High end of the range.
• C) Midpoint of the range.
• D) IFRS presents no specific guidance as to this point.

---

Definitions:

Systematic Observation

A methodical approach to data collection, where there is careful observation of phenomena planned to occur at predetermined times or in predetermined settings.

Empirical

Relies on, deals with, or can be confirmed through direct observation or practical experience rather than abstract theory or pure reasoning.

Common Sense

Practical judgment concerning everyday matters, or a basic ability to perceive, understand, and judge in a manner that is shared by nearly all people.

Sociohistorical Context

The social and historical background or environment that influences and shapes individuals, communities, or events.