Accounting standards require that a portion of the cost of an acquired company be allocated to investee liabilities. However, often in the case of pre-existing contingent liabilities, the amounts may be unknown at the acquisition date. What are the general financial reporting requirements for the consolidated statements at date of acquisition?

Select one:

a. If the fair value of a pre-existing contingent liability is unknown, the liability should not be recognized.

b. A contingent liability would not be recognized unless the loss was "probable."

c. Contingencies meeting the "possible" threshold would be disclosed, not accrued.

d. All of the above statements are true.