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1.1 Discuss the recognition criteria, measurement and disclosure requirements of a provision, in your discussion...

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Accounting

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1.1 Discuss the recognition criteria, measurement and disclosure requirements of a provision, in your discussion also define liability and provision (10 marks) 1.2 Identify whether the following can be recognised as either a contingent liability, provision or contingent asset? ( 5 marks) a) ABC Limited is expecting that 5% of each debtor's book value of R2 000000 will not be recovered b) An employee was injured at work and is suing his company for R10 000000 . The lawyers have advised that it is unlikely that the claim will be unsuccessful. c) If a company has decided to restructure the division but has not informed the affected employees and there is no formal plan developed. d) A manufacturer offers a warranty to a customer for its products - the product warranty in the contract specifies the conditions under which the manufacturer will compensate for defective goods. e) Company A has filed a lawsuit against RT Ltd. There is a fair chance of Company A winning the case. How will it be recognized in the books of Company A

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