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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › contingent liability
A contingent liability should be disclosed by note if it is probable that a transfer of economic benefits to settle it will be required, with no provision being made.
May I know why this statement is wrong? I though a provision should be recognized only when it is probable and the amount can be estimated.
The statement is wrong, because if it is probable then we do recognise it.
