Reporting in the body of the financial statements is required for
A) loss contingencies that are probable and can be reasonably estimated.
B) gain contingencies that are probable and can be reasonably estimated.
C) loss contingencies that are possible and can be reasonably estimated.
D) all loss contingencies.

Question

Quizplus · Accepted Answer

Reporting in the body of the financial statements is required only for loss contingencies that are probable and can be reasonably estimated. Gain contingencies are not required to be reported in the financial statements, and loss contingencies that are possible and cannot be reasonably estimated are disclosed in the notes to the financial statements.

Reporting in the Body of the Financial Statements Is Required