Which statement regarding commitments and contingencies is false?
A)U.S.GAAP record commitments since they have a legal basis
B)Under IFRS,the purchase agreements are recognized when an entity has a demonstrable commitment for a future payment or transfer of assets
C)Under U.S.GAAP,contingent assets and liabilities are recognized if they are probable and can be estimated.
D)Under IFRS,there must be a present obligation that arises from past events and fair value must be determinable

Question

Quizplus · Accepted Answer

Under U.S. GAAP, commitments are not necessarily recorded on the balance sheet because they often represent future obligations that do not yet meet the criteria for recognition as liabilities. Instead, commitments are often disclosed in the notes to the financial statements.

Which Statement Regarding Commitments and Contingencies Is False