When Selecting Within a Range of Outcome Estimates for Probable

question 115

Multiple Choice

When selecting within a range of outcome estimates for probable contingencies, the requirements of IFRS and GAAP, respectively, are to accrue what amount in the range?
$\begin{array}{c}\begin{array}{lll}\\\text {I.}\\\text {II.}\\\text {III.}\\\text {IV.}\end{array}\begin{array}{lll}\underline{\text { GAAP}}\\ \text { minimum}\\ \text { minimum}\\ \text { midpoint}\\ \text { midpoint} \end{array}\begin{array}{lll}\underline{\text { IFRS }}\\\text { minimum}\\\text { midpoint}\\\text { minimum}\\\text { midpoint}\end{array}\end{array}$

• A) I
• B) II
• C) III
• D) IV

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Definitions:

Sundry Liabilities

Various small or infrequent debts and liabilities not classified in the main liabilities categories on a company's balance sheet.

One-Line Method

A consolidation technique, often used in accounting for investments, where only the net income and not the detailed financial activities of an affiliate are included in the parent company's financial statements.

Jointly Controlled Operations

Business activities where control and management responsibilities are shared among two or more parties, often under a joint venture agreement.

Disclosure

The act of making financial information known to the public, typically through financial statements and other official reports, ensuring transparency and accountability.