The threshold for recording contingent liabilities under IFRS is lower than that under GAAP.

Question

Quizplus · Accepted Answer

Under IFRS, contingent liabilities are recorded if it is probable that a liability has been incurred and the amount can be reliably estimated. Under GAAP, contingent liabilities are recorded only if it is probable that a liability has been incurred and the amount can be reasonably estimated. Therefore, the threshold for recording contingent liabilities under IFRS is lower than that under GAAP.

The Threshold for Recording Contingent Liabilities Under IFRS Is Lower