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:

Real World

Actual conditions and circumstances in which people live and interact, as opposed to theoretical or simulated environments.

Unconscious Influences

The effects on an individual's thoughts, feelings, or actions by processes or contents in the mind that operate without conscious awareness.

Defense Mechanisms

Psychological strategies employed by individuals to cope with reality and protect themselves from anxiety and unacceptable impulses.

Traits

Enduring personal characteristics or qualities that influence an individual's behavior across different situations and time.