10) Some contingencies/provisions are recorded, some are disclosed and some are not addressed in the financial statements. Please indicate for each cell in the first table below, whether the contingency would be recorded, disclosed, or not addressed in the financial statements. Also, IFRS and US GAAP differ in their treatment of contingent liabilities. Fill out the 2nd table below to highlight the differences between US GAAP and IFRS. Probable Reasonably Possible Remote US GAAP IFRS Estimable Definition of Probable Not Estimable Estimate in a Range Discounting Terminology

10) Some contingencies/provisions are recorded, some are disclosed and some are not addressed in the financial statements. Please indicate for each cell in the first table below, whether the contingency would be recorded, disclosed, or not addressed in the financial statements. Also, IFRS and US GAAP differ in their treatment of contingent liabilities. Fill out the 2nd table below to highlight the differences between US GAAP and IFRS. Probable Reasonably Possible Remote US GAAP IFRS Estimable Definition of Probable Not Estimable Estimate in a Range Discounting Terminology

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

10) Some contingencies/provisions are recorded, some are disclosed and some are not addressed in
the financial statements. Please indicate for each cell in the first table below, whether the
contingency would be recorded, disclosed, or not addressed in the financial statements. Also,
IFRS and US GAAP differ in their treatment of contingent liabilities. Fill out the 2nd table below
to highlight the differences between US GAAP and IFRS.
Probable
Reasonably Possible
Remote
US GAAP
IFRS
Estimable
Definition of
Probable
Not Estimable
Estimate in a
Range
Discounting
Terminology

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Accounting for Current liabilities, Provisions and Contingencies

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