PNAME: Salac, Juvilyn S.

SECTION: BSA 2

CASE 3
 Is there a present obligation? No
 Is the outflow probable? No
 Can the outflow be measured reliably? No
 Should the provision recognize? Why or why not? No, because the conditions
for the recognition of a provision are not met. No lawsuit is filed yet and
it not expected that a lawsuit will be filed against ECQ, so there is no
present obligation which means there will be also no outflow of resources.
Lastly, the amount of obligation cannot be measured reliably.

CASE 6
 Is there a present obligation? Yes
 Is the outflow probable? Yes
 Can the outflow be measured reliably? Yes
 Should the provision recognize? Why or why not? Yes, because the conditions
for the recognition of a provision are met. ECQ has a legal obligation which
is the restoration of the site at the end of its useful life which means the
outflow of resources is probable and its costs can be measured reliably.

CASE 9
 Is there a present obligation? No
 Is the outflow probable? No
 Can the outflow be measured reliably? No
 Should the provision recognize? Why or why not? No, because the conditions
for the recognition of a provision are not met. At the moment, the entity
has no present obligation because there is no legislation requiring them to
clean up. However, the entity has a contingent liability which will arise
only if the draft law was constituted.

CASE 12
 Is there a present obligation? Yes
 Is the outflow probable? Yes
 Can the outflow be measured reliably? Yes
 Should the provision recognize? Why or why not? Yes, because the conditions
for the recognition of a provision are met. It is stated that a lawsuit was
filed against ECQ, so there is a present obligation that resulted from their
past operation. Also, the obligation is both probable and measurable which
is P100M.

CASE 15
 Is there a present obligation? Yes
 Is the outflow probable? Yes
 Can the outflow be measured reliably? Yes
 Should the provision recognize? Why or why not? Yes, because the entity has
a present obligation; therefore, the outflow of resources is probable and
measureable. In addition, it is a restructuring.