lfm1001

An entity recognizes a provision Sweetie Bracelet With Marine Shell that present obligation if the other recognition criteria described above are met. If it is more likely than not that no present obligation exists the entity discloses a contingent liability Small Sweetie Golden Bracelet the possibility of an outflow of resources embodying economic benefits is remote. The amount recognized as a provision should be the best estimate Wide Purple And Pink Friendship Bracelet the expenditure required to settle the present obligation at the end of the reporting period in other words the amount that an entity would rationally pay Raindance Silver Pendant settle the obligation at the end of the reporting period or to transfer it to a third party at that time. If an entity has a contract that is onerous the present obligation under the contract should be recognized and measured as a provision. An onerous contract is one in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.