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ACCA FR知识点：过去事项的现时义务
文章来源：ACCA全球官网
发布时间：2021-09-16 10:39
阅读：1027次
For some ACCA candidates,specific IFRS®standards are more favoured than others.IAS®37,Provisions,Contingent Liabilities and Contingent Assets appears to be less popular than other standards because,usually,answers to Financial Reporting(FR)questions require a balanced discussion of whether criteria are met,as opposed to calculating numbers.However,IAS 37 is often a key standard in FR exams and candidates must be prepared to demonstrate application of the criteria.
This article will consider the aims of the standard,followed by the key specific criteria which must be met for a provision to be recognised.Finally,it will examine some specific issues which are often assessed in relation to the standard.
The definition of a provision is key to the standard.A provision is a liability of uncertain timing or amount,meaning that there is some question over either how much will be paid or when this will be paid.Before the introduction of IAS 37,these uncertainties may have been exploited by companies trying to‘smooth profits’in order to achieve the results that their various stakeholders wanted.
For example,we will now consider a fictional company known as Rey Co.At the start of the year,Rey Co sets a profit target of$10m for the year ended 31 December 20X8.The chief accountant of Rey Co has reviewed the profit to date and realises they are likely to achieve profits of$13m.The accountant knows that if Rey Co reports a profit of$13m,directors will not get any more of a bonus than if they reported$10m.He also knows that the profit target will be set at$14m next year.
To avoid this,the accountant may be tempted to make some provisions for potential future expenses of$3m,with the impact of making the profit seem lower in the current year.As the double entry for a provision is to debit an expense and credit the liability,this would potentially reduce profit to$10m.Then in the next year,the chief accountant could reverse this provision,by debiting the liability and crediting the statement of profit or loss.This is effectively an attempt to move$3m profit from the current year into the next financial year.
Clearly this is not good for the users of the financial statements,as they would have been given a false impression of the performance of the business.This is where IAS 37 is used to ensure that companies report only those provisions that meet certain criteria.
IAS 37 stipulates the criteria for provisions which must be met for a provision to be recognised so that companies are prevented from manipulating profits.According to IAS 37,three criteria are required to be met before a provision can be recognised.These are:
There needs to be a present obligation from a past event
There needs to be a reliable estimate,and
There needs to be a probable outflow of resources embodying economic benefits(eg cash)
These criteria will now be examined in further detail to see how they can be applied in practice.
Present obligation from a past event
This rule has two parts,first the type of obligation,and second,the requirement for it to arise from a past event(ie something must already have happened to create the obligation).
(a)Type of obligation
The obligation could be a legal one,arising from a court case or some kind of contractual arrangement.Most candidates are able to spot this in exams,identifying the presence of a potential obligation of this type.
Alternatively,the obligation could be constructive.This is where a company establishes an expectation through an established course of past practice.
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Rey Co has a published environmental policy.In this,Rey Co explains that they always replant trees to counterbalance the environmental damage created by their operations.Rey Co has a consistent history of honouring this policy.During 20X8,Rey Co opened a new factory,leading to some environmental damage.Rey Co estimates that the associated tree planting and environmental clear up costs will be$400,000.
Even if the country that Rey Co operates in has no legal regulations forcing them to replant trees,Rey Co will have a constructive obligation because it has created an expectation from its publications,practice and history.
(b)Past event
The obligation needs to have arisen from a past event,rather than simply something which may or may not arise in the future.
EXAMPLE
An employee was injured at work in 20X8 due to faulty equipment and is suing Rey Co.Rey Co’s lawyers have advised that it is probable that the entity will be found liable.Rey Co would have to provide for the best estimate of any damages payable to the employee.This is because the event arose in 20X8 and,based on the evidence available,there is a present obligation.
If the lawyers had advised Rey Co that they would not be held liable for the employee’s injury,there would be no obligation as a result of a past event and therefore no provision would be recognised.The matter would potentially require disclosure as a contingent liability.Contingent liabilities will be explained further below.
Similarly,Rey Co would not provide for any possible claims which may arise from injuries in the future.That is because there is no past event which has created an obligation and any possible claims could be avoided by implementing new safety measures or selling the factory.
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