DEFINITION AND PROCEDURE OF PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS IN THE FINANCIAL STATEMENTS

Provisions, contingent liabilities and contingent assets belong to those, hidden financial assets and liabilities, which are not completely controlled by the organization, which emergence in the future still precisely isn't defined, but it is possible under pre-condition circumstances. Defining these or those provisions, contingent liabilities and contingent assets ? is a difficult objective due to the significant role fulfills assumptions of the expert as he defines what assets and liabilities should be referred to estimated and contingent. The goal of the article is to explain recognition criteria and bases of assessment applied to estimated liabilities, contingent liabilities and contingent assets, and procedure of disclosure of information in notes to the financial statements according to provisions of IFRS (IAS) 37 "Provisions, contingent liabilities and contingent assets".