In a F7 open tuition notes question you have recognised a provision where a law is it be made in the future about resortration of site but I dint recognised it because at PRESENT there is no PRESENT obligation it is a possible obligation hence disclosed as a contingent liab.
Ask the Tutor ACCA FR
IAS 37 provision
Hi,
If there exists current legislation that restoration must be done in the future, it means that TODAY, at PRESENT time, an obligation about future events (expenses) exists. It isn't just possibility.
Sangria, wrong again!
There is no current legislation in place so your answer is way off target. That's why I would really prefer that you didn't attempt to answer these questions.
Rameez, ask yourself "what's the probability the the law will be passed"
The wording suggests that it's more likely than not, so greater than 50%
And that means that the liability / obligation is probable rather than possible
and that's why it is included as a recognised liability
OK?
Sorry! Won't do that again.
Email from OT called to spend 5 minutes and help others with answers in "topics with no replies". That's why I tried.
I promise - won't answer in "ask the tutor forums" anymore (only ask questions:))
Sangria, all is forgiven.
I believe that Admin was encouraging you and others to assist in answering questions in the open forums and on that page titled "Topics with no replies" - it's a separate page, not simply a generic description
No harm done (well, not much anyway :-) )
And please do keep asking your questions - it's a long time since you've asked me anything!
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