Under IAS 37, How Are Contingent Liabilities Treated in the Financial

question 42

Multiple Choice

Under IAS 37, how are contingent liabilities treated in the financial statements?

• A) IAS 37 does not address contingent liabilities.
• B) They are recorded as current liabilities if the amount is reasonably measured.
• C) They are disclosed in the notes to the financial statements when there is more than a remote possibility of an outflow of resources.
• D) They are not disclosed.

---

Definitions:

-pnea

is a suffix related to breathing, used in terms to describe different types of breathing patterns or conditions.

Prefix

In grammar, an affix placed before a word, base, or another prefix to modify a term's meaning.

Suffix

An affix placed at the end of a word to alter its meaning, often indicating tense, plurality, or part of speech in linguistics, or used to denote specificity in scientific terms.

Combining Form

A form of a word used in conjunction with another form to create medical terms.