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:

Ethical Principles

Fundamental guidelines that influence decision-making and behavior, emphasizing concepts such as fairness, respect, responsibility, and integrity.

Self-interest

Acting in a way that is beneficial to oneself, driven by personal gain or advantage.

Formal Operational Thought

A stage in cognitive development, as proposed by Piaget, characterized by the ability to think abstractly, logically, and systematically.

Postconventional Morality

A stage of moral development in which individuals make decisions based on universal ethical principles and inner conscience, beyond societal norms.