The following is statement made in AASB 137 Provisions, Contingent Liabilities and Contingent Assets:
'a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it'.
This statement provides a definition of:

Question

Quizplus · Accepted Answer

The statement defines an onerous contract, which refers to a situation where the costs of fulfilling a contract are greater than the economic benefits expected to be received from it. This requires the recognition of a provision under AASB 137. Deferred liabilities may relate to the recognition of income or expenses in later periods. Future operating losses and present obligations are not defined by the statement.

The Following Is Statement Made in AASB 137 Provisions, Contingent