alleryStart learning →To whom must an obligation be owed for a provision to arise?
AOnly a named, known creditor
BOnly a government authority
COnly a major shareholder
DAnother party, even if unknown
Answer & Solution
Correct answer: D. Another party, even if unknown
There must be a party owed, but that party need not be identified, as with a public obligation.
Keep practising Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets
Browse all Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets questions for CA Final, or explore more Financialreporting topics.
Related questions
A write-down of inventory in a big bath has what impact on cash?Taking one large one-time charge to lower future expenses is known as what?Recognizing an ARO raises both assets and liabilities. What happens to the debt-to-equity A $40,275.96 cost due in 40 years is discounted at 9%. The present value is about what?Tanks costing $15,000 to remove today rise 2.5% a year for 40 years. The future cost is abUnder IAS 37, when an ARO discount rate changes, the present value is recalculated and whaWhen an ARO is first recognized, an asset equal to the initial liability is what?An ARO liability is initially measured at the present value of what?