21 Which of the following statements about contingent assets and contingent liabilities are correct?1 A contingent asset should be disclosed by note if an inflow of economic benefits is probable.2 A contingent liability should be disclosed by note if it is probable that a transfer of economic benefits to settle itwill be required, with no provision being made.3 No disclosure is required for a contingent liability if it is not probable that a transfer of economic benefits to settleit will be required.4 No disclosure is required for either a contingent liability or a contingent asset if the likelihood of a payment orreceipt is remote.A 1 and 4 onlyB 2 and 3 onlyC 2, 3 and 4D 1, 2 and 4
21 Which of the following statements about contingent assets and contingent liabilities are correct?
1 A contingent asset should be disclosed by note if an inflow of economic benefits is probable.
2 A contingent liability should be disclosed by note if it is probable that a transfer of economic benefits to settle it
will be required, with no provision being made.
3 No disclosure is required for a contingent liability if it is not probable that a transfer of economic benefits to settle
it will be required.
4 No disclosure is required for either a contingent liability or a contingent asset if the likelihood of a payment or
receipt is remote.
A 1 and 4 only
B 2 and 3 only
C 2, 3 and 4
D 1, 2 and 4
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