Question: QUESTION 6 (6 marks) 1. Briefly describe the difference between an estimated liability (a provision) and a contingent liability. (3 marks) 2. Outline the accounting

QUESTION 6 (6 marks) 1. Briefly describe the difference between an

QUESTION 6 (6 marks) 1. Briefly describe the difference between an estimated liability (a provision) and a contingent liability. (3 marks) 2. Outline the accounting treatment of contingent liabilities under each of the situations described below. (3 marks) It is probable that the event will occur and it can be reliably determined It is probable that the event will occur, but the amount cannot be reliably determined The probability of occurrence is remote

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