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    Question

    A provision is recognised

    when:
    A It is a possible obligation (less than probable) Correct Answer Incorrect Answer
    B There is a present obligation from past events, outflow probable and amount can be reliably estimated Correct Answer Incorrect Answer
    C It is a contingent asset Correct Answer Incorrect Answer
    D It is an intended future expenditure Correct Answer Incorrect Answer

    Solution

    This is the definition per Ind AS 37 for the recognition of a provision. A possible obligation is only disclosed as a contingent liability.

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