Which of the following is a standard of recognition of contingent liabilities required by IFRS:
A)recognize the liability if the occurrence of the future event is likely meaning it is highly probable.
B)recognize the liability if the occurrence of the future event is more likely than not meaning its probable and it is also measurable.
C)does not require that it be measurable.
D)Recognize the liability if the occurrence of the future event is certain

Question

Quizplus · Accepted Answer

Under IFRS, a contingent liability should be recognized as a provision if the occurrence of the future event is more likely than not (i.e. probable) and it can be measured reliably. This means that there is a greater than 50% chance of the event occurring and the amount of the liability can be estimated with a reasonable degree of certainty. The fact that the liability is measurable is a key requirement for recognition under IFRS.

Which of the Following Is a Standard of Recognition of Contingent