Which of the following is recognized in the financial statements under IFRS?
A) Contingent Assets
B) Contingent Liabilities
C) Provisions
D) None of the above

Question

Quizplus · Accepted Answer

Under IFRS, provisions are recognized in the financial statements when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Contingent liabilities and contingent assets are not recognized in the financial statements; contingent liabilities are disclosed unless the outflow of resources is remote, and contingent assets are not recognized but are disclosed when an inflow of economic benefits is probable.

Which of the Following Is Recognized in the Financial Statements