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.

Understand the structure and purpose of different types of reports.

Recognize the importance of audience identification and the implications for report language and format.

Identify the components and structure of progress, closure, and recommendation reports.

Understand the role of purpose statements in guiding report development and focus.

---

Definitions:

Malaria

A life-threatening disease caused by parasites that are transmitted to humans through the bites of infected mosquitoes, prevalent in tropical and subtropical regions.

Flies

Insects of the order Diptera, known for their ability to fly and often considered pests because some can spread diseases.

Viral Disease

Diseases caused by viruses, microscopic infectious agents that can infect all types of life forms, from animals and plants to microorganisms, including bacteria and archaea.

Influenza

A highly contagious viral infection of the respiratory passages causing fever, severe aching, and often occurring in epidemics.