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Under IFRS, If a Company Can Determine a Reasonable Estimate

Question 59

Multiple Choice

Under IFRS, if a company can determine a reasonable estimate of an expected loss from a lawsuit and it is probable it will lose the suit, it should


A) disclose the basic facts regarding the suit in the notes to its financial statements.
B) accrue the loss.
C) neither disclose in the notes nor accrue the loss.
D) pay the amount estimated.

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