A Company Has a Probable Loss That Can Only Be

question 69

Multiple Choice

A company has a probable loss that can only be reasonably estimated within a range of outcomes. No single amount within the range is a better estimate than any other amount. Under IFRS, what amount of loss contingency should be accrued?

• A) the maximum amount of the range
• B) the midpoint amount of the range
• C) the minimum amount of the range
• D) zero

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Definitions:

Symbolic

Relating to symbols or using symbolism to express ideas, concepts, or values.

Information Dissemination

The act of spreading information or knowledge to a wide audience or group of people.

Critical Information

Essential data or knowledge that is paramount for decision-making or problem-solving in various contexts.

Problem Solving

The process of identifying a challenge or obstacle and developing methods or strategies to overcome it.