Question

IFRS - When should you DISCLOSE a contingent LIAB?

A.At the end of the reporting period.
B.When it is probable and the amount can be reliably estimated.
C.Only if it impacts shareholders' equity.
D.Never, contingent liabilities are always kept confidential.

Answer 1

In IFRS, a contingent liability is disclosed when it is probable that resources will be needed to settle it and the amount can be estimated reliably, usually at the end of the reporting period.

Step-by-step explanation:

Under International Financial Reporting Standards (IFRS), you should disclose a contingent liability when it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. This is typically at the end of the reporting period in which these conditions are met. Disclosure is not required only if the contingent liability has a remote likelihood of resulting in an outflow or if it cannot be measured with sufficient reliability.