UK GAAP - Provisions and Contingencies

Section 21 – Provisions and Contingencies outlines the accounting treatment and disclosure requirements for provisions, contingent assets and contingent liabilities.

The standard sets out how to identify a provision, how they differ from a contingent liability, and when a contingent asset can be recognised.

After completing this module, you will be able to:

• identify when a provision or contingent liability has arisen, and the difference between the two.
• measure and recognise a provision, including applying specific guidance for restructuring provisions and onerous contracts.
• determine when a contingent asset has arisen.
• accurately present and disclose provisions, contingent liabilities and contingent assets within the financial statements.

This module is part of the UK GAAP Library or can be booked as an individual course. To book the full library click here.