Under Current IFRS Requirements, a Provision Is Recognized If

question 124

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.

---

Definitions:

Paid-In Capital

refers to the funds received from shareholders in exchange for shares of stock, representing investment directly into the company.

Organization Costs

Expenses incurred during the establishment of a corporation or entity, including legal fees, registration fees, and promotional expenses.

Intangible Asset

An asset that lacks physical substance, representing value due to legal or competitive rights (e.g., patents, trademarks).

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as shareholders' equity or owners' equity.