Asked by Wenlu Zhang on Jun 18, 2024
Verified
With regard to reporting of contingent liabilities,U.S.GAAP and International Financial Reporting Standards (IFRS) differ in defining the term "probable".Which of the following is correct with regard to defining "probable"?
A) Under U.S.GAAP,"probable" means an event is more likely than not to occur.
B) Under IFRS,"probable" means the chance of an event occurring is slight.
C) Under IFRS,"probable" means an event is more likely than not to occur.
D) Under U.S.GAAP,"probable" means the chance of an event occurring is slight but less than likely.
U.S. GAAP
Generally Accepted Accounting Principles in the United States, a framework of accounting standards, principles, and procedures used in the compilation of financial statements.
IFRS
Stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to bring consistency to financial reporting around the world.
Probable
The likelihood or high chance of something happening or being the case, often used in contexts of forecasting or prediction.
- Recognize differences in financial reporting requirements between US GAAP and IFRS, especially concerning contingent liabilities and probability interpretations.
Verified Answer
Learning Objectives
- Recognize differences in financial reporting requirements between US GAAP and IFRS, especially concerning contingent liabilities and probability interpretations.
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