Under ASPE, a contingency that is not likely to occur
A) should be disclosed in the financial statements.
B) must be accrued as a loss.
C) does not need to be disclosed unless the loss would result in a substantial negative effect on the company's financial position.
D) is recorded as a contingent loss.

Question

Quizplus · Accepted Answer

Under ASPE, a contingency that is not likely to occur does not need to be disclosed unless it would have a substantial negative effect on the company's financial position.

Under ASPE, a Contingency That Is Not Likely to Occur