The following item will not be recognised as a liability in the statement of financial position?
A) a bank loan.
B) a mortgage.
C) a warranty provision.
D) a contingent liability.

Question

Quizplus · Accepted Answer

A contingent liability does not satisfy the recognition criteria because it is dependent on the occurrence of certain events outside the entity's control or the amount of future sacrifice cannot be reliably measured.

The Following Item Will Not Be Recognised as a Liability