The threshold for recording contingent liabilities under IFRS is lower than that under GAAP.
considered to be more likely than not to occur; whereas, GAAP states that an estimated loss is recorded if it is
probable.

Question

Quizplus · Accepted Answer

Under IFRS, contingent liabilities are recorded if there is a possible obligation that is more likely than not to occur. Under GAAP, an estimated loss is recorded if the obligation is probable, which is a higher threshold than "more likely than not" used by IFRS.

The Threshold for Recording Contingent Liabilities Under IFRS Is Lower