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It is acceptable that some adjusting entries contain estimated amounts: True or False ?

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Question added by عيسى ابو الهيش , General Accountant , Al Faisaliah Medical System (FMS)
Date Posted: 2016/10/19
MARLON QUILANG ASUNCION
by MARLON QUILANG ASUNCION , Senior Accountant , Al Shouhra Trading Co., W.L.L. (Chalhoub Group)

It will be acceptable only provided the estimated amount was a measurable one, meaning there was a basis on the estimate and the certainty of the transaction to occur or materialize is most likely to happen.

Faisal Kamran
by Faisal Kamran , Manager Finance , Perfect Finish Coatings LLC

False because adjusting entries are made to adjust previous provisions or estimations.

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