AASB 134 - Interim Financial Reporting - July 2004
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Provisions
B3 A provision is recognised when an entity has no realistic alternative but to make a transfer of economic benefits as a result of an event that has created a legal or constructive obligation. The amount of the obligation is adjusted upward or downward, with a corresponding loss or gain recognised in profit or loss, if the entity’s best estimate of the amount of the obligation changes.
B4 The Standard requires that an entity apply the same criteria for recognising and measuring a provision at an interim date as it would at the end of its annual reporting period. The existence or non-existence of an obligation to transfer benefits is not a function of the length of the reporting period. It is a question of fact.