A Necessary Condition for a Provision to Be Recognised Is

question 72

True/False

A necessary condition for a provision to be recognised is that there is a legal obligation to make a future sacrifice of economic benefits

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Definitions:

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a period of time, typically expressed as a percentage.

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Nominal Rate of Interest

The rate of interest before adjustment for inflation, reflecting the rate at which money will grow over time without considering the purchasing power of that money.

Real Rate of Interest

The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to lenders or investors.