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Contingent liability disclosure in the footnotes of the financial statements would normally be made when

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Contingent liability disclosure in the footnotes of the financial statements would normally be made when

Contingent liability disclosure in the footnotes of the financial statements would normally be made when

▸ the outcome of the accounting event is deemed probable, but a reasonable estimation as to the amount cannot be made by the client or auditor.

▸ a reasonable estimation of the loss can be made, but the outcome is not probable.

▸ the outcome of the accounting event is deemed probable, and a reasonable estimation as to the amount can be made.

▸ the outcome of the accounting event as well as a reasonable estimation of the loss cannot be made.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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Thanks for your help!!

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