Asked by
Verified
Contingent liabilities are:
A) recognised in the financial statements unless the possibility of an outflow in settlement is remote.
B) recognised in the notes to the financial statements because the possibility of an outflow in settlement is remote.
C) recognised in the notes to the financial statements unless the possibility of an outflow in settlement is remote.
D) not recognised in the notes to the financial statements because the possibility of an outflow in settlement is remote.
Contingent Liabilities
Responsibilities that may arise based on the outcome of a future event.
Financial Statements
Documents that provide an overview of the financial condition of an entity including its assets, liabilities, revenues, and expenses over a particular period.
Settlement
The conclusion of a transaction or the resolution of a claim or dispute, usually involving the transfer of funds or assets.
- Gain an understanding of the guidelines for identifying provisions, contingent liabilities, and contingent assets in AASB 137.
- Differentiate the financial reporting approaches applied to acknowledged liabilities, provisions, and contingent liabilities.
Verified Answer
Learning Objectives
- Gain an understanding of the guidelines for identifying provisions, contingent liabilities, and contingent assets in AASB 137.
- Differentiate the financial reporting approaches applied to acknowledged liabilities, provisions, and contingent liabilities.
Related questions
AASB 137 Provisions, Contingent Liabilities and Contingent Assets, Defines a ...
Percy Limited Is a Manufacturer of Playground Equipment ...
An Example of Where an Entity Has a Present Obligation ...
AASB 137 Prescribes the Accounting and Disclosure for All Provisions ...
A Contingent Liability Is Defined as A A) I B) ...