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.

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Definitions:

Sole Owners

Individuals or entities that are the exclusive legal proprietors of a business, property, or any asset.

Purported Partner

A purported partner is someone who acts as though they are a partner in a business, either intentionally or by implication, potentially creating liability as if they were a true partner.

Tangible Harm

Real, physical, or material damage or loss that can be quantified or observed.

Transfer Document

A legal document evidencing the transfer of ownership or title from one party to another.