Final answer:
Under IFRS, a contingent liability can be recognized, disclosed, or both.
Step-by-step explanation:
A contingent liability is a potential liability that may arise in the future depending on the outcome of uncertain events. International Financial Reporting Standards (IFRS) provide guidance on how to deal with contingent liabilities. Under IFRS, a contingent liability can be recognized, disclosed, or both, depending on certain criteria. Recognition means that the contingent liability is recorded in the financial statements as a liability, while disclosure means that it is described in the notes to the financial statements without being recorded as a liability. So, the answer to the question is D. Both recognition and disclosure can be required by IFRS.