Which of the Following Is a Standard of Recognition of Contingent

question 11

Multiple Choice

Which of the following is a standard of recognition of contingent liabilities required by IFRS:

• A)recognize the liability if the occurrence of the future event is likely meaning it is highly probable.
• B)recognize the liability if the occurrence of the future event is more likely than not meaning its probable and it is also measurable.
• C)does not require that it be measurable.
• D)Recognize the liability if the occurrence of the future event is certain

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Definitions:

Social Costs

The total cost to society, including both private costs incurred by producers and also any costs inflicted on third parties, such as pollution.

Pollution Reduction

The process of decreasing the quantity of pollutants released into the environment, typically involving strategies and technologies to clean air, water, and soil.

Pollution Rights

Legal permits allowing companies or organizations to emit a specific amount of pollutants into the environment.

Monetary Incentive

A financial reward or penalty designed to encourage or discourage certain behaviors or actions within an economic framework.