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IAS 37/MFRS 137 Provisions, Contingent Liabilities and Contingent Assets prescribes the accounting treatments for provisions, contingent liabilities and contingent assets.
Required:
Problem (a) What are the criteria stated in IAS 37/MFRS 137 that must be met before a provision may be recognised?
Problem (b) Explain the accounting treatments for the following in accordance with IAS 37/MFRS 137:
(i) Lenovo provides warranties on its products sold to customers.
(ii) It is the policy of the Hyatt Regency Kinabalu Hotel to refurbish the guest rooms every 5 years.
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