IFRS Uses Specific Terminology to Refer to the Likelihood of the Occurrence

question 72

Multiple Choice

IFRS uses specific terminology to refer to the likelihood of the occurrence of an organizational event.Which of the following would need to provide for the recognition of the obligation (i.e.the financial statements adjusted) ?

• A)outflow of resources is required,but cannot be reliably estimated
• B)probable that an outflow of resources is required
• C)likelihood is remote
• D)amount is yet to be confirmed

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Definitions:

Employment Discrimination

Unfair treatment of employees or job applicants based on race, gender, age, religion, nationality, physical ability, or other characteristics irrelevant to job performance.

Productivity Factors

Variables that influence the output of production, including the quality of labor, technology, and the efficiency of processes.

Mean Earnings

The average income earned by individuals in a specific group, calculated by dividing the total income of the group by the number of individuals.

Profit-Seeking Employers

Refers to businesses or individuals that aim to achieve the highest possible profits from their operations.