With regard to reporting of contingent liabilities, U.S. GAAP and International Financial Reporting Standards (IFRS) differ in defining the term "probable". Which of the following is correct with regard to defining "probable"?
A)Under U.S.GAAP, "probable" means an event is more likely than not to occur.
B)Under IFRS, "probable" means an event is likely to occur.
C)Under IFRS, "probable" means an event is more likely than not to occur.
D)Under U.S.GAAP, "probable" means an event is more than likely to occur.

Question

Quizplus · Accepted Answer

Under IFRS, "probable" means that an event is more likely than not to occur, which is generally interpreted as having a probability of greater than 50%.

With Regard to Reporting of Contingent Liabilities, U