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Recognition in FS

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Recognition in FS

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 1, 2023 at 6:01 pm #689248
    sugacca
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Will the following element should be recognised in the financial statements of an entity in the manner described?

    As a non-current liability: a provision for possible hurricane damage to property for a company located in an area which experiences a high incidence of hurricanes

    August 6, 2023 at 8:02 am #689433
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7211
    • ☆☆☆☆☆

    Hi,

    No, we cannot recognise the provision as there is no present obligation as a result of a past event. The event (the hurricane) is in the future plus we have no legal or constructive obligation to make good the property damage.

    Thanks

  • Author
    Posts
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