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.

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Definitions:

Total Output

The total quantity of goods or services produced by an individual, firm, or country over a specified period.

Production Function

A mathematical model that describes the relationship between the inputs used in production and the output of goods or services.

Inputs

Resources, such as labor, materials, and capital, that are used in the production process to create goods and services.

Minimum Cost

The lowest possible cost at which a particular set of goods or services can be produced or acquired without sacrificing quality or quantity.