The following statement, contained in IAS 37, defines: 'a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity'

Question

Quizplus · Accepted Answer

The definition given in the statement clearly matches with the concept of a contingent asset, which is an asset that is recognized only when it is virtually certain that an inflow of economic benefits will arise as a result of past events, but the amount or timing of these inflows is uncertain and depends on the occurrence of one or more uncertain future events that are not entirely within the control of the entity.

The Following Statement, Contained in IAS 37, Defines: 'A Possible