Question
Which of the following regarding the recognition of contingencies is a correct statement? Multiple Choice U.S. GAAP discloses contingent liabilities in the notes to the
Which of the following regarding the recognition of contingencies is a correct statement?
Multiple Choice
U.S. GAAP discloses contingent liabilities in the notes to the financial statements only for recognized contingent loss obligations.
IFRS uses the term contingent liability to include possible but unrecognized contingent obligations.
The threshold for recognition of a contingent obligation is the same under both GAAP and IFRS.
If the estimated liability is a range in which no value is deemed more reliable than another both IFRS and GAAP will record the mid-point of the range as the value.
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