Question：Which of the following best describes a provision according to IAS 37 Provisions, contingent liabilities and contingent assets?

　　A. A provision is a possible obligation of uncertain timing or amount.

　　B. A provision is a possible asset that arises from past events.

　　C. A provision is a credit balance set up to offset a contingent asset so that the effect on the statement of financial position is nil.

　　D. A provision is a liability of uncertain timing or amount.

　　The correct answer is: A provision is a liability of uncertain timing or amount.

　　A contingent liability is a possible obligation of uncertain timing or amount.