When selecting within a range of outcome estimates for probable contingencies, the requirements of IFRS and GAAP, respectively, are to accrue what amount in the range? $\begin{array}{lll}
&\text { IFRS }&\text { GAAP }\
\text { I. } & \text { minimum } & \text { minimum } \
\text { II. } & \text { midpoint } & \text { minimum } \
\text { III. } & \text { minimum } & \text { midpoint } \
\text { IV. } & \text { midpoint } & \text { midpoint }
\end{array}$

A)I
B)II
C)III
D)IV

Question

When selecting within a range of outcome estimates for probable contingencies, the requirements of IFRS and GAAP, respectively, are to accrue what amount in the range? $\begin{array}{lll}
&\text { IFRS }&\text { GAAP }\
\text { I. } & \text { minimum } & \text { minimum } \
\text { II. } & \text { midpoint } & \text { minimum } \
\text { III. } & \text { minimum } & \text { midpoint } \
\text { IV. } & \text { midpoint } & \text { midpoint }
\end{array}$

A)I
B)II
C)III
D)IV

Quizplus · Accepted Answer

Under IFRS, when a range of outcomes is possible for a contingent liability, the entity should accrue the amount within the range that is most likely to occur, which could be considered the midpoint if there is no more likely amount. Under GAAP, if no amount within the range is more likely than any other, the minimum amount in the range should be accrued.

When Selecting Within a Range of Outcome Estimates for Probable