Question

Under U.S. GAAP, contingent liabilities are recorded if the estimated loss is probable. Under IFRS, contingent liabilities are recorded if the estimated loss is "more likely than not." Which framework will report more contingent liabilities on the balance sheet?

Answer 1

Answer:

International Financial Reporting Standards (IFRS)

Explanation:

International Financial Reporting Standards, commonly referred to as IFRS, are accounting rules issued by the IFRS Foundation and the International Accounting Standards Board to have a prevalent international business language so that business accounts across international boundaries are understandable and comparable.