Financial statement note disclosure is required for material potential losses when the loss is at least reasonably possible:
A) Only if the amount is known.
B) Only if the amount is known or reasonably estimable.
C) Unless the amount is not reasonably estimable.
D) Even if the amount is not reasonably estimable.

Question

Quizplus · Accepted Answer

Financial statement note disclosure for material potential losses is required even if the amount of the loss is not reasonably estimable. This ensures transparency and provides users of the financial statements with information about potential risks that could affect the financial position of the entity.

Financial Statement Note Disclosure Is Required for Material Potential Losses