In the context of IPSAS 19 (Provisions, Contingent Liabilities and Contingent Assets), explain the meaning of the term 'constructive obligation'.

      

In the context of IPSAS 19 (Provisions, Contingent Liabilities and Contingent Assets), explain the meaning of the term 'constructive obligation'.

  

Answers


Martin
A constructive obligation is an obligation that/derives from an entity's actions where:

- By an established pattern of past practice, published policies or a sufficiently specific
current statement, the entity has indicated to other parties that it will accept certain
responsibilities; and

- As a result, the entity has created a valid expectation on the part of those other parties
that it will discharge those responsibilities.
marto answered the question on February 15, 2019 at 06:31


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