For the IASB,a Provision Should Be Recognized When

question 20

Multiple Choice

For the IASB,a provision should be recognized when:

• A) An entity has a present obligation as a result of a past event.
• B) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation.
• C) A reliable estimate can be made of the amount of the obligation.
• D) All of these.

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Definitions:

Deming Approach

A continuous quality improvement model consisting of a logical sequence of four key stages: Plan, Do, Check, Act (PDCA).

Profound Knowledge

Deep understanding and insight into the complexities and interdependencies in fields or areas of study.

Fishbone Diagram

A visual tool used for identifying and analyzing the causes of problems or defects, structured in a way that resembles the skeleton of a fish.

Quality Problem

A situation or issue that detracts from the quality or performance of a product or service.