Final Answer:
In accordance with IFRS, when a loss contingency can only be reasonably estimated within a range of outcomes and no single amount within the range is a better estimate than any other, the company should accrue the *minimum amount* in that range, assuming it is probable that an outflow of resources embodying economic benefits will be required.
Step-by-step explanation:
In accounting, loss contingencies are events or situations where the outcome is uncertain, and they usually involve possible losses that will only be confirmed by future events. When estimating such losses within a range of outcomes and no single amount is more probable or better estimated than others, the accrual amount follows a specific principle under IFRS.
IFRS recommends recognizing a loss provision when it's probable (more likely than not) that an outflow of resources embodying economic benefits will be required to settle the obligation arising from the loss contingency. However, when the loss can only be reasonably estimated within a range, and no amount within that range is a better estimate than any other, the standard suggests accruing the minimum amount within that range. This is in line with the principle of prudence or conservatism in accounting, where potential losses are recognized immediately but gains are only recognized when realized.
By accruing the minimum amount within the range, it ensures that the financial statements reflect a prudent and conservative approach, accounting for the potential loss while not overstating liabilities or potential impacts on financial performance. This approach aligns with the requirement to report financial information that provides a reliable and unbiased representation of the company's financial position.