1. The CFO of Diamonnds for You Corp. decides that the entity needs to recognize a provision...

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1. The CFO of Diamonnds for You Corp. decides that the entity needs to recognize a provision of $500,000. The CFO anticipates this payment having to be made a year and a half from now. The current discount rate is 7%.

a. What is the entry to record the provision under IFRS? Please explain your answer and reasoning.

b. What is the entry to record the provision under US GAAP? Please explain your answer and reasoning.

Posted Date: Oct 27, 2021 10:54 AM

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1. The CFO of Diamonnds for You Corp. decides that the entity needs to recognize a provision...

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Solution The amount of provision required under both IFRS and ... View the full answer

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