1 The term "provision" as it is used in IAS 37, is most closely related to what term in U.S. GAAP? Contingent liability, where the outflow of resources is "remote." Contingent liability, where the outflow of resources is "probable." Current liability, where the outflow is difficult to measure. Reserve for bad debt, where the amount recoverable is uncertain." 2 Under IAS 37, how are contingent liabilities treated in the financial statements? IAS 37 does not address contingent liabilities. They are recorded as current liabilities if the amount is reasonably measured. They are disclosed in the notes to the financial statements when there is more than a remote possibility of an outflow of resources. They are not disclosed