Under ASPE, a liability for a contingent loss is recorded if both of the following conditions are met:
A) occurrence is high and amount cannot be estimated.
B) amount is reasonably estimated and occurrence is low.
C) occurrence is low and amount is determinable.
D) occurrence is high and amount can be reasonable estimated.

Question

Quizplus · Accepted Answer

Under ASPE, a liability for a contingent loss is recorded if the likelihood of the event occurring is high (probable) and the amount of the loss can be reasonably estimated.

Under ASPE, a Liability for a Contingent Loss Is Recorded