Contingencies should not be accrued, but should be disclosed if they are either (1) probable, but not estimable, or (2) reasonably possible.

Name: Contingencies should not be accrued, but should be disclosed if they are either (1) probable, but not estimable, or (2) reasonably possible.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

Contingencies that are probable and estimable should be accrued, but if they are probable and not estimable, or reasonably possible, they should be disclosed in the financial statements.

Contingencies Should Not Be Accrued, but Should Be Disclosed If