Under ASPE, a liability for a contingent loss is recorded if both of the following conditions are met
A) occurrence is high and amount cannot be estimated.
B) amount is reasonably estimated and occurrence is low.
C) occurrence is low and amount is determinable.
D) occurrence is high and amount can be reasonably estimated.

Question

Quizplus · Accepted Answer

Under ASPE, a liability for a contingent loss is recorded if the occurrence of the event is likely (high) and the amount of the loss can be reasonably estimated.

Under ASPE, a Liability for a Contingent Loss Is Recorded