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.
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

IFRS requires contingent liabilities to be recognized if the occurrence of the future event is more likely than not, meaning it is probable. This standard is known as the 'more likely than not' criteria. IFRS also requires that the amount of the liability can be measured reliably before it can be recognized in the financial statements.

Which of the Following Is a Standard of Recognition of Contingent