Under AASB 137 Provisions, Contingent Liabilities and Contingent Assets, the Appropriate

Under AASB 137 Provisions, Contingent Liabilities and Contingent Assets, the appropriate accounting treatment for future operating losses is to:

A) determine a reasonable estimate of the cost and provide for the future liability;
B) determine the cost and charge it directly against retained earnings;
C) not recognise such items in the financial statements;
D) measure on the basis of estimated future cash flows.