Question: d) Provisions are recognised as a liability when the three criteria as outlined in MFRS 137 Provisions, Contingent Liabilities and Contingent Assets are complied with.

d) Provisions are recognised as a liability when the three criteria as outlined in MFRS 137 Provisions, Contingent Liabilities and Contingent Assets are complied with. These criteria are supported by several accounting concepts such as the concepts of measurement, conservatism, objectivity, and relevance. Required: Discuss the relationship between the three recognition criteria and the four concepts above. (8 marks)

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