When a Contingency Must Be Accrued Under IFRS, the Charge

question 25

Multiple Choice

When a contingency must be accrued under IFRS, the charge is referred to as

• A) an endowment.
• B) a provision.
• C) an appropriation.
• D) a risk expense.

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Definitions:

Committed

In finance, "committed" refers to a pledge or firm agreement to execute a financial transaction or investment.

Assigned

Allocated or designated to a particular task, position, or purpose.

Unassigned

Refers to funds, resources, or tasks not specifically allocated or designated for a particular purpose or to a particular entity.

Spendable

Refers to the amount of money that is available for use, not tied up in investments or savings.