Precisions on liabilities, accruals and contingent liabilities based on the theory of probabilities

Authors

DOI:

https://doi.org/10.15381/quipu.v29i59.20143

Keywords:

Liability, accrual, contingent liability, event, uncertainty

Abstract

Objective: To describe the concepts of liabilities, accruals and contingent liabilities based on relevant aspects of the Theory of Probabilities. Method: The research was qualitative, descriptive, and non-experimental, with the use of the deductive-inductive method, based on the International Financial Reporting Standards (IFRS) content analysis and Probabilities Theory. Results: The results show discrepancies in the concepts of passives, provisions and contingent liabilities, including those raised by IAS 37 and the Conceptual Framework for Financial Reporting, also considering relevant aspects of the Theory of Probabilities. Conclusion: There are conceptual divergences between IAS 37 and the Conceptual Financial Reporting Framework in regards to the definition of liabilities, provisions or contingent liabilities, which could have a significant impact on the financial statements, as well as their poor interpretation.

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Author Biography

  • Rosa Milagros Castañeda Moreano, Pontificia Universidad Católica del Perú

    Degree in Accounting from Pontificia Universidad Católica del Perú. Independent Auditor, Certified Public Accountant, Certified in Risk Management, with 19 years of experience in IFRS compliance, financial auditing, planning, budgeting, treasury and accounting, financial due diligence, evaluation of the internal control environment (COSO ERM) and risk management (ISO 31000) in companies of various economic sectors.  Knowledge of English and Portuguese, office at intermediate level. Research interests: Risk management, accounting epistemology, accounting theory.

     

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Published

2021-05-27

Issue

Vol. 29 No. 59 (2021)

Section

Original papers

License

Copyright (c) 2021 Rosa Milagros Castañeda Moreano

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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How to Cite

Castañeda Moreano, R. M. (2021). Precisions on liabilities, accruals and contingent liabilities based on the theory of probabilities. Quipukamayoc, 29(59), 9-16. https://doi.org/10.15381/quipu.v29i59.20143