Which of These Does Not Fit the IAS 37/AASB 137

question 28

Multiple Choice

Which of these does not fit the IAS 37/AASB 137 definition of a provision as a liability of uncertain timing or amount?

• A) Provision for warranties
• B) Provision for environmental damage
• C) Provision for long-service leave
• D) Provision for depreciation

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Definitions:

Standard Cost

A predetermined cost of manufacturing, administering, or marketing a product under normal conditions.

Selling and Administrative Expenses

The sum of all direct and indirect selling expenses and all general and administrative expenses of a company.

Finished Goods Inventory

Completed products that are ready for sale but have not yet been sold.

Work in Process

Inventory that includes goods partially worked on but not yet completed; it is found between raw materials and finished goods in manufacturing.