IAS 37 - Provisions, Contingent Liabilities and Contingent Assets

Chapter 4 DAIF

Provision

A liability

Uncertain

Timing

Amount

Disclosure for provision

Changes provision amount

Description - Reason of provision

Recognized

Probable (outflow of economic benefits)

Amount of obligation (reliable estimate)

SPLOCI (Expenses)

SFP (Long-term provision)

Contingent liabilities

Possible obligation arising
From past events

Confirmed by
Occurrence or non-occurrence of

One or more
Uncertain future events
Not within the entity’s control

Contingent liabilities

A present obligation arises from past events

But not recognized

(a) Not probable

Outflow of economic benefits

To settle the obligation

(b) Obligation

Cannot be measured

Sufficient reliability

Disclosure for contingent liability

Description - Nature of contingent liability

Estimate financial effect

If remote, no need to disclose in notes

Contingent asset

Possible asset arising from past events

Existence will be confirmed by

Occurrence, Non-occurrence

One or more uncertain future events

Not within the entity’s control

Recognized

Not recognized in SFP

If virtually certain - recognize in FS

If possible economic benefit inflow - disclosure with note

Summary

Provisions

ဖြစ်နိုင်ချေက 50% အထက်မှာရှိတယ် Probable

Provision အဖြစ် FS မှာ recognize လုပ်ရမယ်

Statement ထဲမှာ သူ့ figure အသေးစိတ်ကို note ထဲမှာ ပြရမယ်

Contingent liabilities

ဖြစ်နိုင်ချေက 50% အောက်မှာရှိတယ် Possible
FS မှာ recognize မလုပ်ဘူး note အနေနဲ့ပြရမယ်

5% အောက်ဆိုရင် Remote

Recognize လည်း မလုပ် note အနေနဲ့လည်းမပြဘူး

Contingent assets

Probable
FS မှာ recognize မလုပ်ဘူး note အနေနဲ့ပြရမယ်

Possible
Recognize လည်း မလုပ် note အနေနဲ့လည်းမပြဘူး

Remote
Recognize လည်း မလုပ် note အနေနဲ့လည်းမပြဘူး