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CMA Intermediate · Corporate Accounting and Auditing · Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37)

Under Ind AS 37, which of the following is excluded from the scope of the Standard, unless it is onerous?

Executory contracts are outside Ind AS 37 unless they are onerous. The scope paragraph excludes items resulting from such contracts, except where the contract is onerous, so only the executory contract option is correct; the other items fall within the Standard.

  1. AObligations arising from executory contractsCorrect
  2. BObligations arising from a legal dispute pending in court
  3. CObligations to restore a site after operations
  4. DObligations arising from a past event that are uncertain in timing

Explanation

Ind AS 37 applies to all entities except provisions, contingent liabilities and contingent assets resulting from executory contracts, unless the contract is onerous, and those covered by another Standard. Court disputes, restoration obligations and uncertain-timing obligations are not excluded by this scope exception.

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