IAS 37 Provisions and Contingencies part 2

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  1. Avatar of kamshizo kamshizo says:
    December 13, 2012 at 9:19 am

    someone help please. why he decided to make debit and credit entries of 4?

    • Avatar of MikeLittle MikeLittle says:
      December 14, 2012 at 10:57 am

      @kamshizo, At 3.44, I say “Next year, the provision should be 40,000″ We already have 36,000 in the provision account. So now we need a further 4,000 to bring it to 40,000.

      Ok, ok, I should have said “Say, next year, the provision should be 40,000″

  2. Avatar of patama patama says:
    May 23, 2012 at 7:12 pm

    Hi In Reply to 7suleo11 question:
    please can someone please explain how he arrived at 8% by 200 and 2% BY 1000.
    Answer

    The question says 90% suffer no default therefore 10% of sale must suffer faults.
    now split the 10% faulty microwave between minor and major defects.
    In the question it state that 80% suffer minor fault therefore 80%x 10%= 8% so the 2% must relate to major faults.

    now use the percentage to multiply to estimated cost of repair e,g
    8%x $200,000
    2%x$1,000,000

  3. Avatar of 7suleo11 7suleo11 says:
    April 15, 2012 at 6:25 pm

    please can someone please explain how he arrived at 8% by 200 and 2% BY 1000.

  4. Avatar of dbm1 dbm1 says:
    December 2, 2011 at 7:53 pm

    Hi , Thanks for the lectures. I have benefited a lot. My question is ‘Is the unrolling of discount provision the same as the unwinding of discount?’

  5. Avatar of simelanempumie simelanempumie says:
    November 21, 2011 at 8:23 pm

    Powerful lecture

  6. Avatar of theskillful theskillful says:
    May 30, 2011 at 4:19 pm

    i have a question plz help ,cause i am quite confused with this provision stuff…my Qs is how to initially recognise the provision?
    Dr. ??
    Cr. Provision

  7. Avatar of f28878 f28878 says:
    May 21, 2010 at 12:30 am

    Useful,Thanks.

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