Contingencies
1).The
amount of a contingent loss should be provided for by a charge in the statement
of profit and loss if it is
probable
that future events will confirm that, after taking into account any related
probable recovery, an asset
has
been impaired or a liability has been incurred as at the balance sheet date,
and a reasonable estimate of
the
amount of the resulting loss can be made.
2).The
existence of a contingent loss should be disclosed in the financial statements
if either of the conditions in
above
paragraph is not met, unless the possibility of a loss is remote.
3).Contingent
gains should not be recognised in the financial statements.
Events occurring after the Balance Sheet Date
1).Assets
and liabilities should be adjusted for events occurring after the balance sheet
date that provide
additional
evidence to assist the estimation of amounts relating to conditions existing at
the balance sheet date
or
that indicate that the fundamental accounting assumption of going concern
(i.e., the continuance of
existence
or substratum of the enterprise) is not appropriate.
2).Dividends
stated to be in respect of the period covered by the financial statements,
which are proposed or
declared
by the enterprise after the balance sheet date but before approval of the
financial statements, should
be
adjusted.
3).Disclosure
should be made in the report of the approving authority of those events
occurring after the balance
sheet
date that represent material changes and commitments affecting the financial
position of the enterprise.
Disclosure
1).If
disclosure of contingencies is required by paragraph 11 of the Statement, the
following information should
be
provided: the nature of the contingency, the uncertainties which may affect the
future outcome, an estimate
of
the financial effect, or a statement that such an estimate cannot be made.
2).If
disclosure of events occurring after the balance sheet date in the report of
the approving authority is
required
by the Standard then it shall disclose; the nature of the event, an estimate of
the financial effect, or a
statement
that such an estimate cannot be made.
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