On the reporting of liabilities where a range of values exists as a possible outcome, IFRS requires which of the following points to be recorded as a provision, if the outcome is probable?
A) Low end of the range.
B) High end of the range.
C) Midpoint of the range.
D) IFRS presents no specific guidance as to this point.

Question

Quizplus · Accepted Answer

IFRS requires the midpoint of the range to be recorded as a provision if the outcome is probable. This is known as the most likely outcome.

On the Reporting of Liabilities Where a Range of Values