Gain contingencies that are remote and can be reasonably estimated
A) must be disclosed in a note to the financial statements.
B) may be disclosed in a note to the financial statements.
C) must be reported in the body of the financial statements.
D) should not be reported or disclosed.

Question

Quizplus · Accepted Answer

Gain contingencies that are remote and can be reasonably estimated should not be reported or disclosed in the financial statements. This approach avoids the potential for misleading financial statement users with information about gains that are unlikely to occur.

Gain Contingencies That Are Remote and Can Be Reasonably Estimated