Under IFRS, the term provision:
A) Means establishing an asset account.
B) Refers to expense.
C) Means establishing a provision for bad debts.
D) Means establishing a contra-asset account.
E) Usually refers to a liability whose amount or timing is uncertain.

Question

Quizplus · Accepted Answer

Under IFRS, a provision usually refers to a liability whose amount or timing is uncertain. It is recognized by an entity when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount of the obligation can be estimated reliably.

Under IFRS, the Term Provision