alleryStart learning →A present-obligation suit is unlikely to be paid. Is a liability booked?
ANo, only disclose it
BNo, wait until probable
CNo, wait until certain
DYes, if reliably measured
Answer & Solution
Correct answer: D. Yes, if reliably measured
Probability of outflow is not required here; a present obligation from a past event with a reliably measurable fair value is enough.
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