Final answer:
Disclosure related to a contingent event is not required when the likelihood of payment is considered remote, as they are potential future events that could affect the financial position of a company, but do not require disclosure if the event is unlikely to occur.
Step-by-step explanation:
Disclosure related to a contingent event usually is not required if the likelihood of payment is remote. In the context of financial reporting and accounting, contingent events are potential future events that might affect a company's financial position or results.
The accounting standard requires that companies disclose information about contingent liabilities unless the possibility of an outflow of resources embodying economic benefits is remote.
When a contingent liability is possible but not probable, or if the amount of the liability cannot be reasonably estimated, it should be disclosed, but not necessarily recorded on the balance sheet.
For example, a lawsuit where the company has a strong defense and the lawsuit is not expected to result in payment would typically be considered a remote contingency, and therefore disclosure may not be required.