A loss contingency which is remote and cannot be reasonably estimated:
A) Must be disclosed in a note to the financial statements.
B) May be disclosed in a note to the financial statements.
C) Must be reported in the body of the financial statements.
D) Is permitted to be reported in the body of the financial statements.

Question

Quizplus · Accepted Answer

A loss contingency which is remote and cannot be reasonably estimated may be disclosed in a note to the financial statements but is not required to be reported in the body of the financial statements, as it is not considered a material event.

A Loss Contingency Which Is Remote and Cannot Be Reasonably