According to IAS 37 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

A contingent asset should not be recognized in the financial statements, as it is uncertain whether the asset will be realized. However, the entity should disclose information about the contingent asset in the notes to the financial statements, providing details about the nature of the asset and the circumstances under which it may be realized.