Liabilities which fail the recognition criteria and where the possibility of an outflow is remote should:

Question

Quizplus · Accepted Answer

Liabilities that fail the recognition criteria and have a remote possibility of outflow should not be recognized in the financial statements at all. Instead, they are often disclosed in the notes to the financial statements if they are considered relevant for the users' understanding of the financial position and performance.

Liabilities Which Fail the Recognition Criteria and Where the Possibility