CERTYNEX IFRS ACADEMY

Estrévia's trial balance includes an account named "provision for depreciation of machinery". How should it be classified under IAS 37?

A provision to be presented as a liability, as its name states.

An adjustment to the carrying amount of the machinery, outside the scope of IAS 37.

A contingent liability to be disclosed in the notes.

A provision for the future replacement of the machinery, to be measured under IAS 37.