Under ASPE, disclosure in the footnotes to the financial statements is the only way to properly report contingent losses.

Question

Quizplus · Accepted Answer

Under ASPE (Accounting Standards for Private Enterprises) in Canada, contingent losses are recognized in the financial statements when it is likely that the future event will confirm a loss and the amount can be reasonably estimated. Disclosure in the footnotes is required for possible losses or for losses that cannot be reasonably estimated, but recognition in the financial statements is not limited to footnote disclosure.

Under ASPE, Disclosure in the Footnotes to the Financial Statements