According to IAS 37, How Should Contingent Assets Be Recognized

question 24

Multiple Choice

According to IAS 37, how should contingent assets be recognized?

• A) They should be disclosed in the notes to the financial statements if the inflow of resources is probable.
• B) They should be recognized like any other asset, with a debit to "contingent assets."
• C) They should not be disclosed anywhere in the financial statements due to their uncertainty.
• D) They should only be disclosed in the notes to the financial statements if the inflows of resources are virtually certain.

---

Definitions:

Cross-functional Team

A group composed of members with varied expertise and skills from different specialties or departments within an organization, working together towards a common goal.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum price that consumers are willing to pay for each unit, thereby capturing all possible consumer surplus.

Single Price Profit Maximization

A pricing strategy where a single price is set for all customers to maximize profits, disregarding any market segmentation.

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit which corresponds to the buyer's maximum willingness to pay.