According to AASB 137 Provisions, Contingent Liabilities and Contingent Assets, the appropriate treatment for a contingent asset in the financial statements of an entity is:

Question

Quizplus · Accepted Answer

According to AASB 137, a contingent asset should not be recognised in the financial statements. Instead, it should be disclosed in the notes if the inflow of economic benefits is probable. Therefore, choice A is the appropriate treatment for a contingent asset in the financial statements of an entity.