Under IAS 37, Inflows of Resources That Are "Virtually Certain

question 33

Multiple Choice

Under IAS 37, inflows of resources that are "virtually certain" to be received should be:

• A) disclosed as contingent assets in the notes to the financial statements.
• B) recognized as assets.
• C) undisclosed until management is absolutely certain that resources will be received.
• D) reported only in the cash flow statement.

---

Definitions:

Extracellular Fluid

Fluid that exists outside the cells of an organism, including blood plasma, lymph, and interstitial fluid, providing a medium for transport of nutrients and waste.

Solute Concentration

The amount of a substance dissolved in a unit volume of solution, often referred to in terms of molarity, molality, or mass percent.

Hypertonic

A Hypertonic solution is one in which the concentration of solutes is greater outside the cell than inside it, leading to cell shrinkage.

Osmotic Pressure

Osmotic pressure is the pressure that must be applied to a solution to prevent the inward flow of water across a semipermeable membrane, driven by differences in solute concentration.