Under IFRS, if every amount in a range of contingent losses is equally likely, the amount accrued is the:

Multiple Choice

• Low end of the range.
• High end of the range.
• Midpoint of the range.
• None of the choices are correct.

On January 1, 2016, Yukon Company agreed to grant its employees two weeks vacation each year, with the provision that vacations earned in a particular year could be taken the following year. For the year ended December 31, 2016, all twelve of Yukon's employees earned $1,200 per week each. Eight of these vacation weeks were not taken during 2016. In Yukon's 2016 income statement, how much expense should be reported for compensated absences?

$0

• $9,600
• $14,400
• $28,800

In its financial statements, an enterprise should accrue a liability for a loss contingency involving a possible cash payment if certain conditions exist. Each of the following is a condition for accrual except:

Multiple Choice

• The payment is probable.
• The cause of the loss contingency occurred prior to the end of the year.
• The amount of payment can be estimated before the financial statements are issued.
• The obligation is a legally enforceable claim.

Gain contingencies usually are recognized in the income statement when:

Multiple Choice

• The gain is realized.
• The gain is probable and the amount is known.
• The gain is probable and the amount can be reasonably estimated.
• The gain is reasonably possible and the amount can be reasonably estimated.