Question 10 What is the treatment of contingent liabilities in the financial statements? A. Contingent liabilities are to be recognised as a separate category in the statement of financial position, with a clear note disclosure of the factors that constitute the contingent event for each material contingent liability. B. Contingent liabilities are required to be disclosed in the notes to the financial statement when the amount of the obligation cannot be measured with sufficient reliability. C. Material contingent liabilities only are required to be recognised in the financial statements under AASB 137. D. Contingent liabilities are to be disclosed in the notes to the accounts in categories that reflect their nature and possible timing