Question
Estimated time to complete
Provisions are liabilities of uncertain timing or amount, such as warranties or lawsuits. Companies must provide a change statement for provisions (opening balance, reconciled to closing balance). Accounting policy information may be contained in two or more disclosure notes: in the summary of significant accounting policies and in a specific note dealing with the provision.
Required:
1. Identify a set of IFRS-compliant annual financial statements for 2009 or 2010 and provide information in rows 1 to 4 in the table below.
2. Extract and copy the note disclosure related to ONE provision to rows 5 and 6 in the table below.
3. Interpret the information contained in each line item of the change statement, using your own words (row 7 in the table below). Also describe accounting policy and additional information.
Your response should be no longer than 500 words, excluding the disclosure notes themselves.