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Question 1 Under IFRS, a contingent gain will be recorded in the financial statements when Not yet a. it is deemed likely to occur. answered b. the amount can be reasonably estimated. Marked out of 1.00 c. it is deemed likely to occur and the amount can be reasonably estimated. d. a recovery (such as known amount of funds reimbursed) has been made. Question 2 When a company is threatened with litigation, which of the following factors needs to be considered in determining whether a liability should be recorded under IFRS? Not yet answered a. the likelihood of an unfavourable outcome Marked out of 1.00 b. the time period in which the cause of action occurred P Flag c. All these factors must be considered. d. the ability to make a reasonable estimate of the loss If the warranty is sold in addition to the product (at customer choice), there is no separate warranty revenue recognized. Select one: True False