The Following Is Statement Made in IAS 37: 'A Contract

question 1

Multiple Choice

The following is statement made in IAS 37: 'a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it'.
This statement provides a definition of:

• A) an onerous contract;
• B) a deferred liability;
• C) a future operating loss;
• D) a present obligation.

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Definitions:

Indirect Costs

Expenses that are not directly attributable to a specific product or service but are necessary for the general operation of a business, such as utilities, rent, and administration.

Globalizing Operations

The process of expanding business operations on a global scale, adapting to international markets, and leveraging global efficiencies.

Supply Chain

The network of all entities involved in producing and delivering a product or service from supplier to customer.