Question
Which of the following is true concerning contingency reporting? A) U.S. GAAP requires that a contingent liability be recognized instead of a contingent loss, whereas
Which of the following is true concerning contingency reporting?
A) U.S. GAAP requires that a contingent liability be recognized instead of a contingent loss, whereas IFRS requires both
B) A key difference in reporting contingent liabilities under U.S. GAAP compared to IFRS is that only IFRS requires that the obligation is probable and the amount estimable to recognize the obligation
C) IFRS allows companies to report contingent gains if a present obligation exists and the sacrifice of resources is probable
D) IFRS uses the term provisions to refer to contingent liabilities that are accrued and reported on the balance sheet while an obligation that is disclosed in the notes is labeled contingent liability.
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