Provisions, contingent assets and contingent liabilities – IAS 37.pptVIP

Provisions, contingent assets and contingent liabilities – IAS 37 Week 5 MN20018 Off Balance Sheet Financing – Substance over Form Substance Has a transaction occurred Giving rise to a new asset or liability Giving rise to a change in an existing asset or liability Rights Access to benefits Evidenced by exposure to risks Likelihood of risks arising Substance over form Typical examples: Consignment stocks Sale and repurchase agreements Debt factoring Consignment stocks Legal title retained by consignor Consider economic risks and benefits Likelihood of stock being returned Past experienc