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when we say “completeness of provision” and this completeness is referring to the criteria of provision ? past events…., probable outflow…. reliable measurement ?
i’m not sure what does this “completeness” means if that is not the definition
It means the financial statement assertion of completeness. These assertions are assumed knowledge of AA – see pages 70/71 of the AAA notes for a summary to remind you of their meaning.
it says whether provision has been “recorded” therefore it can also mean that it has meet the provision criteria is satisfied ?
I don’t think so – meeting the criteria to be recognised relates to the existence assertion – is there a liability? If not (i.e. it doesn’t exist) a provision cannot be recognised.
An example to consider for completeness – suppose we are talking about a provision for redundancy payments. In asking “is it complete”? we mean does it include the payments due to everyone who has been made redundant? does it include all elements of the redundancy packages to which employees are entitled? (statutory redundancy pay, compensation in lieu of notice, any bonus/pension entitlements, etc, etc)
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