The following is statement made in IAS 37: '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

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This statement defines an onerous contract, which refers to a contract where the costs of fulfilling the obligations under the contract exceed the economic benefits expected to be received. Such contracts require recognition of a provision for the present obligation in the financial statements of the entity.

The Following Is Statement Made in IAS 37: 'A Contract