With reference to IAS 37, identify the correct statements from the following:  I.     A contingent asset should be disclosed by note if an inflow of economic benefits is probable.  II.    Contingent assets must not be recognised in financial statements unless an inflow of economic benefits is virtually certain to arise. III.   No disclosure of a contingent liability is required if the possibility of a transfer of economic benefits arising is remote.    a- I, II and III b- I and II only c- II and III only d- I and III only

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.