SCOPE

COVERS OUT OF SCOPE

- Dismantling - Income Tax Provisions
- Decommissioning - ESOP, Employee Benefit
- Rehabilitation - Financial Liabilities
- Levies - Insurance Contracts
- Environmental Rehabilitation - Non- Onerous executory Contracts

OBJECTIVE : PRESCRIBE
CRITERIA FOR
- Recognition - Provisions
- Measurement - Contingent Liability
- Disclosures - Contingent Assets
 DEFINITION
LIABILITY OF UNCERTAIN TIME/ AMOUNT
▪ Past Event ▪ Not Certain
▪ Present Obligation ▪ Can be estimated
▪ Settlement : Outflow (of Resources) ▪ Best / Reliable Estimate

RECOGNITION
CRITERIA DESCRIPTION
▪ Present Obligation ▪ More Likely than Not
▪ Reliable Estimate ? ▪ Yes
▪ Outflow : Probable ? ▪ Yes

PROVISION

Can obligation be avoided by Future Axn ?

Yes No
 Column1

▪ No
▪ No

CONTINGENT LIABILITY