IFRS
PROVISIONS are accrued (amount is estimable, and the outflow of resources is probable ~50% chance or greater). You accrue for the middle amount
CONTINGENICIES are disclosed (Amount could be estimable, but not probable, or vice versa)
US GAAP
CONTINGENCIES (basically same thing as a provision under IFRS) You accrue when probable (>75% or so) and estimable. You accrue the lower of the range of values.
OTHER CONTINGENCIES You disclose (If estimable, but not probable, or vice versa)
For ASSETS, basically under both you can't accrue for them (conservatism) UNLESS (under IFRS only) the amount is known and the economic benefit that flows to you is virtually certain.
Hope this helps 🙂
B-85 OCT 2012
A-84 NOV 2012
R-90 JAN 2013
F-89 AUG 2012
Ethics-92 (3rd try)
I am DONE BABY!!!
Used Roger 2012 + Wiley + NINJA Notes
.