The threshold for recording contingent liabilities under IFRS is higher than that under GAAP.

Question

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Under GAAP,contingent liabilities (and corresponding losses)are recorded if the estimated loss is probable.Under IFRS,contingent liabilities (and corresponding losses)are recorded if the estimated loss is "more likely than not" to occur.The threshold under IFRS is lower than that under GAAP,causing more contingent liabilities to be reported under IFRS than under GAAP.

The Threshold for Recording Contingent Liabilities Under IFRS Is Higher