Question 18 Which of the following does not describe a requirement under the FRF for SMEs related to accounting for loss contingencies?

• a) Accrue loss contingencies when a loss is probable and estimable.
• b) Disclose loss contingencies for which a loss is at least reasonably possible.
• c) Disclose the amounts of accruals for loss contingencies.
• d) When a loss contingency is disclosed, include in the disclosure the estimated amount of a loss contingency or a statement that management cannot estimate the amount.

Question 19 Which of the following is a quality that the FRF for SMEs believes helps to make financial statements useful but that the FASB considers an inappropriate quality?

• a) Timeliness
• b) Verifiability
• c) Conservatism
• d) Predictive value