The Following Is Statement Made in AASB 137 Provisions, Contingent

question 20

Multiple Choice

The following is statement made in AASB 137 Provisions, Contingent Liabilities and Contingent Assets:
'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:

Summary Plan Description

A document provided by plan administrators that clearly explains the benefits, rights, and obligations under a retirement or health plan.

Employee Retirement Income Security Act

A federal law that sets minimum standards for pension plans in private industry and provides for extensive rules on the federal income tax effects of transactions associated with employee benefit plans.

Benefit Plan

A set of benefits provided by an employer to its employees, which may include health insurance, retirement savings plans, and other perks.

Consolidated Omnibus Budget Reconciliation Act

A U.S. federal law that provides individuals and their families the option to continue healthcare coverage for a limited time after losing health benefits.