Contingencies

Question 1

ASPE

A contingency exists when:

Answer 1

1) There is an existing condition
2) Uncertainty with respect to a possible gain or loss to the entity
3) Resolution based on the occurence or non occurence of a future event

Question 2

ASPE Contingent loss is accrued in the financial statemetns if:

Answer 2

• It is likely that the loss will occur

- The amount of the loss can be reasonably estimated.