Accounting Standard (AS) - 2. page

Illustration 3: Offshore Oilfield : An enterprise operates an offshore oilfield where its licensing agreement requires it to remove the oil rig at the end of production and restore the […]

Illustration 2: Contaminated Land – Legislation Virtually Certain to be Enacted An enterprise in the oil industry causes contamination but does not clean up because there is no legislation requiring […]

Illustration 1: Warranties A manufacturer gives warranties at the time of sale to purchasers of its product. Under the terms of the contract for sale the manufacturer undertakes to make […]

Illustration C  : Illustrations: Recognition This illustration illustrates the application of the Accounting Standard to assist in clarifying its meaning. It does not form part of the Accounting Standard. All […]

Illustration B Decision Tree The purpose of the decision tree is to summarise the main recognition requirements of the Accounting Standard for provisions and contingent liabilities. The decision tree does […]

  Illustration A Tables – Provisions, Contingent Liabilities and Reimbursements : The purpose of this illustration is to summarise the main requirements of the Accounting Standard. It does not form […]

Disclosure of Recognition and Measurement Rules :   For each class of provision, an enterprise should disclose: (a) the carrying amount at the beginning and end of the period; ‘ […]

Application of the Recognition and Measurement Rules : Future Operating Losses Provisions should not be recognised for future operating losses. Future operating losses do not meet the definition of a […]

Use of Provisions : A provision should be used only for expenditures for which the provision was originally recognised. Only expenditures that relate to the original provision are adjusted against […]

Changes in Provisions : Provisions should be reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of […]