In the case of a non-adjusting event, IAS 10 requires it to be:Select one alternative:disclosed as a contingent liability, if it is an unfavourable material eventreflected in the financial statements if it is material and relates to an item that would normally be included in the financial statementsdisclosed by way of note if it is materialreflected in the financial statements, if it is an unfavourable material event; disclosed by way of a note, if it is a favourable event

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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In the case of a non-adjusting event, IAS 10 requires it to be:

Select one alternative:

disclosed as a contingent liability, if it is an unfavourable material event
reflected in the financial statements if it is material and relates to an item that would normally be included in the financial statements
disclosed by way of note if it is material
reflected in the financial statements, if it is an unfavourable material event; disclosed by way of a note, if it is a favourable event

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

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In the case of a non-adjusting event, IAS 10 requires it to be "disclosed by way of note if it is material".

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