Under IFRS, contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will occur.

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Under IFRS, contingent liabilities are only recorded in the financial statements if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be estimated reliably. If the possibility is remote, it is not recorded.

Under IFRS, Contingent Liabilities Should Be Recorded in the Accounts