Under U.S. GAAP if a company cannot determine whether the event has occurred, the requirement is to recognize a liability if it is probable that the event has occurred.

Question

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Under U.S. GAAP, a liability is recognized if it is both probable that the event has occurred and the amount can be reasonably estimated. If the occurrence is uncertain, it does not meet the criteria for recognition.

Under US GAAP If a Company Cannot Determine Whether the Event