alleryStart learning →Depreciation and doubtful debt provisions are really:
AContingent items
BRestructuring costs
CSurplus reserves
DAsset value adjustments
Answer & Solution
Correct answer: D. Asset value adjustments
Such items adjust asset carrying amounts, so they are not provisions in the sense of liabilities of uncertain timing or amount.
Keep practising AS 29 Provisions and Contingencies
Browse all AS 29 Provisions and Contingencies questions for CA Inter, or explore more Accounting topics.
Related questions
Use of estimates in preparing a provision:A present obligation where outflow is not probable is classed as a:To whom can an obligation be owed?Which obligation exists independently of the entity's future actions?A restructuring plan creates an obligation only if it is meant to:Which is evidence that a restructuring plan has started to be implemented?An executory contract falls within the provisions rules only if it is:A provision and contingent liability arise from the same facts. Disclosure should: