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Problem 1: In accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets, which of the following statements is correct?
Option 1: Contingent liabilities and provisions are required by AASB 137 to be disclosed in the financial statements.
Option 2: Contingent assets where realisation of economic benefits is probable should be recognised in the financial statements.
Option 3: Constructive obligations are recognised when entities have no realistic alternative to making future sacrifice of economic benefits.
Option 4: Provisions for future necessary repairs and maintenance should be recognised in the financial statements.
Financial Statement Analysis and Preparation
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