The term provision as it is used in IAS 37, is most closely related to what term in U.S. GAAP?
A. Contingent liability, where the outflow of resources is remote.
B. Contingent liability, where the outflow of resources is probable.
C. Current liability, where the outflow is difficult to measure.
D. Reserve for bad debt, where the amount recoverable is uncertain.
Answer:B
The term provision as it is used in IAS 37, is most closely related to what term in U.S. GAAP?
A. Contingent liability, where the outflow of resources is remote. B. Contingent liability, where the outflow of resources is probable. C. Current liability, where the outflow is difficult to measure. D. Reserve for bad debt, where the amount recoverable is uncertain.