Would a Company Be More Likely to Report a Contingent

question 33

Multiple Choice

Would a company be more likely to report a contingent liability under U.S.GAAP or IFRS?

• A)U.S.GAAP.
• B)IFRS.
• C)Equally likely.
• D)Contingent liabilities are not reported under IFRS.

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Definitions:

Real Estate Development

The process of purchasing land, financing real estate deals, building or having buildings constructed, and selling or leasing the finished product to end-users.

Express Authority

Is the specific powers granted by a principal to an agent in a contractual agreement to perform certain actions on behalf of the principal.

Disclosed Principal

In agency law, a principal whose identity is known by the third party at the time the agent makes a contract with the third party.

Doctrine of Estoppel

A legal principle that prevents a party from denying or asserting anything to the contrary of what has previously been established as truth.