Explain,in the Context of the Latest IAS 37,why 'Provisions' for Items

question 2

Essay

Explain,in the context of the latest IAS 37,why 'provisions' for items such as future repairs and maintenance are no longer permitted to be recognised.

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Definitions:

Source of Value

The origin from which something (such as a business, product, or service) derives its worth or usefulness.

Evaluating Performance

The process of assessing the effectiveness and efficiency of employees or processes within an organization, often for the purpose of making informed management decisions.

Specific Behaviors

Distinctive actions or conduct of individuals that are observable and measurable, often used as criteria for performance evaluations or research studies.