Final answer:
A remote outflow of economic benefits is classified as a contingent liability and disclosed in footnotes rather than recorded on financial statements.
Step-by-step explanation:
If the probable outflow of economic benefits is deemed 'remote', it should typically be classified as a contingent liability that is not recorded on the financial statements. Instead, it may be disclosed in the footnotes of the financial statements if the potential impact is significant to the understanding of the financial position.
The concept of 'remote' indicates a low probability event that does not warrant recording an actual liability but may still be relevant information for stakeholders.