For purposes of recognizing a provision "probable" is defined as more likely than not

Name: For purposes of recognizing a provision "probable" is defined as more likely than not
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true according to International Accounting Standards (IAS) and Generally Accepted Accounting Principles (GAAP). A provision must be recognized if it is probable, which is defined as more likely than not, that an outflow of resources will be necessary to settle a present obligation.

For Purposes of Recognizing a Provision "Probable" Is Defined as More