Knowledge Check 01 Which of the following describes the criteria that must be met for a contingent liability to be reported as a liability on the balance sheet?

IAS 37 Provisions, contingent liabilities and contingent assets prescribes the accounting and disclosure for those items named in its title. Required Define provisions and contingent liabilities and briefly explain how IAS 37 improves consistency in financial reporting.

Describe the accounting treatment of anticipated uncollectible accountsreceivable.

State the reason Fundamental Assumptions are always required to be disclosed in the financial statements.