According to IAS 37, the appropriate treatment for a contingent asset in the financial statements of an entity is:

Question

Quizplus · Accepted Answer

According to IAS 37, a contingent asset should not be recognized in the financial statements unless the realization of the asset is virtually certain. Therefore, the appropriate treatment for a contingent asset is to disclose information about it in the notes to the financial statements, but not to recognize it in the financial statements. The disclosure should provide information on the nature of the contingent asset and an estimate of the financial effect if it were to be realized.

According to IAS 37, the Appropriate Treatment for a Contingent