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

Question

Quizplus · Accepted Answer

Contingencies that have a remote chance of occurring do not require recognition, but only disclosure in the notes to the financial statements.

Answer: A, C, and D 
 Contingencies that are probable and estimable, or have uncertain but high probabilities of occurring, require recognition and measurement in the financial statements, as well as disclosure in the notes. Cash discounts given for early payment by customers do not involve uncertainties, so they do not require recognition or disclosure as a contingency.

Under IFRS,which of the Following Will Only Require Only a Note