When Are Contingent Liabilities Recorded

When are contingent liabilities recorded?

A) If they are probable and estimable, they must be recorded even before the outcome of the future event.
B) If they are probable and estimable, they should be disclosed in the notes to the financial statements.
C) The accounting principle that determines whether a contingent liability is to be recorded is that of historical cost.
D) Contingencies that are not estimable should not be recorded or disclosed in the financial statements even if they are probable.