In accordance with AASB 137 "Provisions,Contingent Liabilities and Contingent Assets",which of the following statements is correct?
A) Contingent liabilities and provisions are required in AASB 137 to be disclosed in the financial statements.
B) Contingent assets where realisation of economic benefits is probable should be recognized in the financial statements.
C) Constructive obligations are recognised when entities have no realistic alternative to making future sacrifice of economic benefits.
D) Provisions for future necessary repairs and maintenance should be recognized in the financial statements.
E) None of the given answers.

Question

Quizplus · Accepted Answer

Constructive obligations are recognized when an entity has created a valid expectation in other parties that it will discharge certain responsibilities, leaving it with no realistic alternative but to fulfill them.

In Accordance with AASB 137 "Provisions,Contingent Liabilities and Contingent Assets",which