In the recognition criteria for liabilities with uncertain amount and/or timing, "probable" is used in U.S.GAAP to refer to a threshold of likelihood-a rule of thumb used in practice is approximately _____ In IFRS, "probable" as recognition criterion for liabilities with uncertain amount and/or timing means approximately _____.
A)33%; 25%
B)51%; 51%
C)60%; 25%
D)80%; 51%
E)90%; 75%

Question

Quizplus · Accepted Answer

In U.S. GAAP, "probable" is generally considered to be a likelihood of 75-80%, while in IFRS it is considered to be a likelihood of approximately 51%. Therefore, the best choice is D as it reflects these thresholds.

In the Recognition Criteria for Liabilities with Uncertain Amount And/or