AASB 137 Defines a Provision As

question 2

Multiple Choice

AASB 137 defines a provision as:

• A)a present obligation arising from past events,the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits
• B)a liability of uncertain timing and amount.
• C)a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence/non-occurrence of one or more uncertain events not wholly within he control of the entity.
• D)a present obligation that arises from a past event but is not recognised because the amount of the obligation cannot be measured with sufficient reliability.

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Definitions:

On Approval

A conditional agreement for the sale of goods where the buyer is not obligated to complete the purchase unless they approve of the goods.

Risk of Loss

The responsibility for damage or loss of goods during a transaction or while in transit.

Inspected

Examination or review of a condition or situation, often for compliance or quality control.

Delivery

The act of transferring possession of a good or document from one party to another, fulfilling a contractual obligation.