Under IFRS, a distinction is made between provisions and contingencies. Provisions are estimated liabilities that are reported on the statement of ﬁnancial position whereas contingencies are not recognized as liabilities because of the uncertainty of the amount and timing of future payments.

Question

Quizplus · Accepted Answer

This statement accurately describes the distinction between provisions and contingencies under IFRS.

Under IFRS, a Distinction Is Made Between Provisions and Contingencies