Reference no: EM132765872

Problem 1: Under PAS 37, a "provision" is recognized

a) When there is a legal obligation arising from a past event, the probability of the outflow of resources is less than probable, and a reliable estimate can be made.

b) When there is a constructive obligation as a result of a past event, the outflow of resources is probable, and a reliable estimate can be made of the amount of the obligation.

c) When there is a possible obligation arising from past event.

d) When management decides that it is essential that a provision be made.

Problem 2: Which of the following is correct regarding interim reporting?

a) Comprehensive income is not reported

b) Each statement must be marked "unaudited"

c) Interim in reporting is required under IFRS

d) Permanent inventory decline should not be recorded in the interim period but at year-end