Contingent Liabilities and Contingent Assets

Natural disasters IFRS accounting In the wake of the recent and devastating flood events in Queensland and Victoria, the destruction caused by Cyclone Yasi in Far North Queensland and the fires that have raged in Western Australia, attention for business has now turned from crisis management and clean up to addressing the longer term financial … Read more

Topics hide Definition of provision IAS 37: ‘Onerous Contracts – Cost of Fulfilling a Contract’ The key definition of provision Considerations Specific types of provisions/no-provisions Definition of provision The definition of provision is key to IAS 37. A provision is a liability of uncertain timing or amount, meaning that there is some question over either … Read more

Topics hide Contingencies Recognition criteria for provisions and contingent liabilities Contingent Liabilities Recognition criteria for contingent assets Recognition criteria for contingent consideration Earn-outs Contingent consideration in shares or cash Goodwill and contingent consideration 12 month measurement period Examples Recognition criteria for contingent settlement provisions Illustration of classification process for contingent settlement provisions Recognition criteria for … Read more