Under ASPE, a contingent liability is recorded in the accounting records
A) if it is likely that a future event will confirm that a liability has been incurred and the amount of the related loss can be estimated.
B) if the contingency has not already been disclosed in the notes to the financial statements.
C) if the amount can be estimated, but the possibility of occurrence is remote.
D) under no circumstances.

Question

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Under ASPE, a contingent liability is recorded if it is likely that a future event will confirm that a liability has been incurred and the amount of the related loss can be estimated.

Under ASPE, a Contingent Liability Is Recorded in the Accounting