Under IFRS, which of the following will only require only a note disclosure as a contingency?
A)Remote chance of loss from a lawsuit in process
B)Loss from an investment in equity securities that is certain
C)Cash discounts given for early payment by customers; almost always taken
D)Probable claim for an income tax refund

Question

Quizplus · Accepted Answer

Under IFRS, a contingency that has a remote chance of resulting in a loss, such as a lawsuit in process with a remote chance of loss, would only require note disclosure and not be recognized in the financial statements. Choices B, C, and D involve situations where a financial impact is certain or probable, thus requiring accounting treatment beyond mere note disclosure.

Under IFRS, Which of the Following Will Only Require Only