The description of 'probable' in the AASB Framework means that:
A) Assessments of the degree of uncertainty attaching to the flow of economic benefits are made on the basis of evidence.
B) Assets will be recognised if the expected probability of future benefits arising is less than 50 per cent.
C) A high degree of professional judgement may be required in preparing accounting reports.
D) Assessments of the degree of uncertainty and a high degree of professional judgement may be required in preparing accounting reports.

Question

Quizplus · Accepted Answer

The description of 'probable' in the AASB Framework means that assessments of the degree of uncertainty and a high degree of professional judgement may be required in preparing accounting reports. The answer option A is partially correct but does not cover the aspect of professional judgement. The answer option B is incorrect as assets are recognized when the expected probability of future benefits arising is more than 50%. The answer option C is also incorrect as it only covers one aspect of 'probable' and does not include the degree of uncertainty.

The Description of 'Probable' in the AASB Framework Means That