Under IFRS, a provision is
A) a special fund set aside to pay long-term debt.
B) unearned revenue.
C) a liability of uncertain timing or amount.
D) an allowance for future dividends to be paid.

Question

Quizplus · Accepted Answer

A provision is a liability of uncertain timing or amount that arises from a past event, such as a legal dispute or a restructuring of the company. It is recognized and measured in accordance with IAS 37 - Provisions, Contingent Liabilities and Contingent Assets. A provision is not a special fund, unearned revenue or an allowance for future dividends.

Under IFRS, a Provision Is