Where there is a significant uncertainty with respect to the measurement of an item,
A)do not record anything in the financial statements.
B)recognize the item in the financial statements and disclose the measurement uncertainty
In the notes to the financial statements.
C)do not record anything in the financial statements but disclose the measurement
Uncertainty in the notes to the financial statements.
D)record the maximum amount in the financial statements.

Question

Quizplus · Accepted Answer

When there is significant uncertainty in measurement, it is appropriate to recognize the item in the financial statements and disclose the uncertainty in the notes, providing transparency and additional context for users of the financial statements.

Where There Is a Significant Uncertainty with Respect to the Measurement