Unless the probability of any outflow in a settlement is remote,an entity needs to disclose for each class of contingent liability:
A) the possibility of any reimbursement.
B) an indication of the timing and amount uncertainties.
C) an estimate of its financial effect.
D) All of the given answers must be disclosed.

Question

Quizplus · Accepted Answer

Unless the probability of any outflow in a settlement is remote, an entity needs to disclose all of the given answers for each class of contingent liability to provide complete and accurate information to the users of financial statements. The possibility of any reimbursement, an indication of the timing and amount uncertainties, and an estimate of its financial effect are all important information for users to make informed decisions.

Unless the Probability of Any Outflow in a Settlement Is