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.

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Definitions:

Shares of Stock

Units of ownership interest in a corporation or financial asset, providing a proportion of the profit to shareholders as dividends.

Fundraiser Site

A website or platform designed to collect donations or funds for various causes, projects, or organizations.

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A multifunctional cooler that gained fame on Kickstarter for its built-in blender, speaker, and other innovative features, notable for both its crowdfunding success and subsequent delivery challenges.

Kickstarter Campaign

A fundraising effort launched on the Kickstarter platform to gather financial support from the public for creative projects.