Richmond Ltd has a regular program for maintaining its plant and equipment. In order to provide for the future payments, it has established a 'provision for plant maintenance account'. As at 30 June 2023 the balance this account is $40,000 which represents the amount that Richmond Ltd intends to spend on plant maintenance over the next four years. Richmond Ltd discloses this provision as a liability in its Statement of financial position as at 30 June 2023. Is this appropriate in terms of the AASB's Conceptual Framework for Financial Reporting?

Answer rating: 100% (QA)

According to the AASBs Conceptual Framework for Financial Reporting the recognition of a liability i... View the full answer