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Sir in part B of the question it states that an Asset has been written down to its recoverable amount and the impairment been recognized in P/L and the “Government has indicated that it may compensate the company for any loss in value of the assets upto 20% of the impairment loss.
The answer has correctly stated that it isn’t virtually certain that the compensation will be received since government has merely indicated that it may compensate.
My doubt is that at least contingent asset needs to be disclosed right? The answer doesn’t say anything about contingent asset.
Am i right?
If probable – disclose
If possible – ignore