Contingencies

Question 1

when to recognize contingent gain or loss ?

Answer 1

A- contingent gain could not be recognized until settled - only footnote disclosure
B-Contingency Loss recognized as following :
-Probable and could be reasonably estimated: recognize JE
-Likely : Footnotes
-Remote : ignore

Question 2

What is the difference between US GAAP AND IFRS regarding estimating contingent liability ?

Answer 2

If the amount of contingent loss and liability can not be reasonably estimated then GAAP CHOOSE THE MINIMUM IN RANGE BUT IFRS CHOOSES THE MIDPOINT

Question 3

When not to recognize contingent loss ?

Answer 3

When its only possible to occur only disclosure footnotes is required