AS29 : PROVISIONS CONTINGENT LIABILITIES AND CONTINGENT ASSESTS


AS29 : Provisions ,Contingent Liabilites and Contingent Assests


  1. Basics
    1. liability : Settlement expected to result in outflow
    2. present obligation : > 50% likely that result in outflow of resources
    3. possible obligation : <50% chance
  2. All about Provisions
    1. meaning : liability which can be measured
    2. recognition criteria (3 conditions)
      • >50%chance + 
      • outflow +
      • reliable estimate
    3. measurment provision
      1. best estimate
    4. other notable points
  3. All about Contingent liability
    1. meaning : consumer filed a case
    2. possible obligation <50% of loosing case i.e, flow of resources
    3. present obligation 
      1. outflow not probable
      2. reliable estimate cant be made
    4. recognition: should not be disclosed
    5. disclosure : generally  disclose but dont disclose if remote
  4. Contingent assest
    1. meaning : possible assest
    2. recognition: dont 
    3. exception: if virtually certain
    4. disclosure: director's report
  5. Reimbursement
    1. recognition : only virtually  certain
    2. valuation : must not exceed provision
    3. disclosure : 
      1. p/l /; show net of provision
      2. b/s : recognise as separate assest

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