Liabilities
You'll learn how to account for and audit two critical liability types: leases and provisions. This session covers how lessees and lessors recognise lease assets and liabilities under IFRS 16, then explores the three-part test for recognising provisions—a key area where audit judgment is essential.
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In this lesson
- 0:00 Understanding leases: lessee and lessor
- 1:24 Audit procedures for lease agreements
- 3:22 Provisions: definition and recognition criteria
- 4:43 Contingent liabilities vs provisions
- 6:58 Auditing provisions: procedures and evidence
About this lesson
You'll discover the practical procedures for verifying lease calculations, identifying contingent liabilities that require disclosure rather than recognition, and working with management and legal advisors to ensure liabilities are complete and accurate in the financial statements.
Duration: 9m
Transcript
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