Which of the following statement is incorrect with

Solution

Ind AS 37 defines a provision as a liability of uncertain timing and amount and prescribes conditions that have to be satisfied for recognition of a provision. A provision shall be recognised when: ·         an entity has a present obligation (legal or constructive) that is a result of a past event; ·         it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and ·         a reliable estimate can be made of the amount of the obligation. A contingent liability is contingent upon happening/non happening of an event. An entity shall not recognise a contingent liability.