Which of the following statements regarding the recognition of contingencies is not correct?

Multiple Choice

• IFRS guidance is built around a balance sheet perspective.
• Both IFRS and U.S. GAAP require recognition of a contingent liability when it is both probable and can be reasonably estimated.
• U.S. GAAP relies on an income statement perspective.
• Only U.S. GAAP requires recognition of a contingent liability.