Presentation of trade payables, provisions, contingent liability and contingent assets in financial statements

CHAPTER 5

5.4 PRESENTATION OF TRADE PAYABLES, PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT

ASSETS IN FINANCIAL STATEMENTS

Trade payable should be presented as current liability in the Statement of Financial Position. Provisions

are reported either as current, or non-current liabilities, depending on the date of expected payment.

If the provision is expected to be settled during 12 months from the reporting date, it is classified as

current liabilities. Otherwise, the provision should be classified as non-current liabilities. A contingent

liability is recorded if the contingency is likely, and the amount of the liability can be reasonably

estimated. The liability may be disclosed in a footnote on the financial statements unless both

conditions are not met. A contingent asset should be disclosed in the director’s report where an inflow

of economic benefits is probable. When the realization of income is certain, then the related asset is

not a contingent asset and its recognition as an asset is appropriate.

Vast IT Pro Statement of Financial Position as at 31 Dec 2019 Note RM’000

Non-Current Liabilities Deferred tax liabilities Borrowings Provision for litigation Current Liabilities Trade and other payables Provision for repairs Borrowings Current tax liabilities 17 18

19

18 xxx xxx xxx

xxx xxx xxx xxx

Notes to the Financial Statements - Note 19- Trade and Other Payables

Trade payables Third parties

Balance as at 1 Jan 2019

RM’000

xxx

Balance as at 31 Dec 2019

RM’000

xxx

Other payables Third parties Deposits received Accruals xxx xxx xxx xxx xxx xxx