Question 4 says that it is possible for inflow of resources in other words certain so I don't know why the answer is no adjustment, no disclosure. Please explain?
Ask the Tutor ACCA AA
Question practice -contingent
Short answer - that is the correct treatment (IAS 37)
The accounting treatment, which depends on "likelihood", is summarised on page page 118 of the notes - see the explanation on that page regarding contingent assets.
"Probable" means "more likely than not" - i.e. >50% (this is assumed knowledge of IAS 37 from FA).
Sign in to reply to this topic.