Which of the following is not true of a provision:
A)provisions are measured at the discounted value of the amount required to settle the obligation.
B)provisions are a type of liability
C)accumulated depreciation and accumulated impairment are types of provisions
D)to be recognised, a provision must satisfy the recognition criteria for a liability.

Question

Quizplus · Accepted Answer

Accumulated depreciation and accumulated impairment are not types of provisions. They are separate accounts used to record the reduction in value of assets. Provisions, on the other hand, are created to account for a liability or an obligation that is uncertain or contingent.

Which of the Following Is Not True of a Provision