Under IFRS,if it is greater than ________ probability that an obligation is going to arise,and the amount can be estimated,then a "provision" should be recorded by making a journal entry.
A)25%
B)33%
C)50%
D)67%

Question

Quizplus · Accepted Answer

According to IFRS, a provision should be recorded when there is a greater than 50% probability that an obligation will arise and the amount can be estimated. This means that the likelihood of the obligation occurring is more probable than not, and the amount of the obligation can be reasonably estimated. If these conditions are not met, a provision should not be recorded. Therefore, option C) is the best choice.

Under IFRS,if It Is Greater Than ________ Probability That an Obligation