definitions
Deposit: It is a type of debt that the time of settlement or determination of its amount is relatively significant.
Debt: means the obligation to transfer economic benefits by a business entity, resulting from past transactions or other events.
Binding event: It is an event that creates a legal or customary obligation in such a way that the business entity is required to settle it.
Legal obligation: It is an obligation that comes from a contract or legal requirements.
Customary Obligation: It is an obligation resulting from the actions of a business unit in cases where the business unit has shown to other persons that it will accept certain responsibilities based on its past behavior, declared policies, or clearly defined current regulations, and
As a result, the business unit has created a reasonable expectation for them that it will fulfill its responsibilities.
Possible debt:
a. It is an uncertain obligation that arises from past events and its existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events that are not completely under the control of the business entity, or
b. It is a current obligation that arises from past events, but is not recognized due to the following reasons:
1. The withdrawal of economic benefits to settle the obligation is not possible.
2. The amount of the commitment cannot be measured with sufficient reliability.
Contingent asset: It is an uncertain asset that arises from past events and its existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events that are not completely under the control of the business entity.
Unprofitable contract: It is a contract whose unavoidable expenses for fulfilling the obligations arising from the contract are more than the expected economic benefits of that contract.
Restructuring: It is a program that is designed and controlled by the management and creates important changes in the scope of the business unit’s activity or the way of performing that activity.
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