According to IAS 37 (Provisions,contingent Liabilities and Contingent Assets)for a Provision

question 10

Multiple Choice

According to IAS 37 (provisions,contingent liabilities and contingent assets) for a provision to be recognized there must be:

• A) A proven outflow of economic resources which has been independently valued
• B) A probable outflow of economic resources which has been independently valued
• C) A probable outflow of economic resources of which a reliable estimate can be made
• D) A definite outflow of economic resources of which an accurate valuation can be made

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Definitions:

Sulfur Dioxide Emissions

Pollutants released into the atmosphere, primarily from burning fossil fuels, that can lead to acid rain and harm to human health.

Environmental Standard

Environmental standard is a guideline or limit placed on levels of pollutants or emissions that activities, industries, or products must comply with to protect the environment.

MSB = MSC

The condition where marginal social benefit equals marginal social cost, often considered the optimal point of resource allocation by economists.

Coal Mine Pollution

Environmental contamination resulting from coal mining activities, including air and water pollution from coal dust and runoff.