About AS 29

94 views 1 replies
my dear friends could you plse explain me the as 29 contingent liabilities and contingent assets and provision with examples plse
Replies (1)

Hi, I am sure it will be like this

Provision- will be crated when the provision definition is met. Examples, warranties, restructuring (dismantling) provisions. 

C. Asset- when the economic benefit inflow is possible or uncertain, contingent asset is disclosed. Ex. If 0% of receivables are doubtful but u r sure you can recover, provision is created, if it isn’t uncertain about the rest 50%, the amount is disclosed as c. Asset

C. Liability- this is also same, when your certain that you need to pay legal damages in the future, you create a provision. If your uncertain, disclose c. Liability amount. 

When chances of economic benefit inflow or outflow is remote, do nothing,


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register