Which statement is correct about provisions,contingent assets and contingent liabilities?
A)The same probability threshold is used to record contingent liabilities and provisions.
B)The same probability threshold is used to record contingent assets and contingent liabilities.
C)Possible contingent liabilities are recorded.
D)Virtually certain contingent assets are recorded.

Question

Quizplus · Accepted Answer

Virtually certain contingent assets are recorded because they are almost guaranteed to occur, whereas contingent liabilities and provisions have different probability thresholds for recognition.

Which Statement Is Correct About Provisions,contingent Assets and Contingent Liabilities