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Spike co MCQ

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Spike co MCQ

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • August 29, 2019 at 7:55 pm #543752
    maxpopper
    Member
    • Topics: 177
    • Replies: 132
    • ☆☆☆

    Spike co began operating a new mine in Jan 20×3 under a 5 year government licence which required spike co to landscape the area after mining ceased at an estimated cost of $100000

    As per IAS 37 is provision required in financial statements for year ended 31 dec 20×4?

    Sir the above statement is true but one 1 thing 1 want to ask that,
    for provision to be created there should be present obligation + reliavle estimate + probable chances of outflow

    Sir here, there is a present obligation, reliable estimate of $100000 has also been made , but how we can say that there are probable chances of outflow in this question?

    August 30, 2019 at 6:23 am #543779
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    We are operating under a government licence that tells us that we need to landscape the area, so we are definitely going to have to do this, thus making it probable.

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