Which of the following statements is correct?
A) Under IFRS, contingencies may be accrued, but not under ASPE.
B) Litigation for which the company will probably be found guilty would normally be accrued as a provision.
C) Under IFRS, content gains should be recognized if they are reasonably certain to occur.
D) A contingency is more likely to require an accrual than a provision.

Question

Quizplus · Accepted Answer

Under IFRS, if litigation is likely to result in a loss and the amount can be reliably estimated, it should be accrued as a provision.

Which of the Following Statements Is Correct