Under IFRS, a Distinction Is Made Between Provisions and Contingencies

question 113

True/False

Under IFRS, a distinction is made between provisions and contingencies. Provisions are estimated liabilities that are reported on the statement of financial position whereas contingencies are not recognized as liabilities because of the uncertainty of the amount and timing of future payments.

---

Definitions:

Collective Attitude

The shared outlook or beliefs of a group.

Generational Effect

The impact of historical events experienced by a particular generation which shapes their attitudes, behaviors, and values over their lifetime.

Liberal Attitude

A mindset that favors progressive change in society, often advocating for human rights, democracy, and freedom of expression.

Social Issues

Subjects of concern or controversy that directly impact society and its constituents, including matters like poverty, education, healthcare, and equality.