What reporting do international financial reporting standard

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Problem 1: A company has a loss that can be estimated and has a reasonably possible chance of occurrence. What reporting does International Financial Reporting Standards require regarding this loss?

Option 1: It should be put into a memo until the actual loss materializes.

Option 2: It should be accrued and reported on the financial statements and reported in the notes to the financial statements.

Option 3: It should be accrued and reported on the financial statements.

Option 4: It should be reported in the notes to the financial statements.

Option 5: None of the above.

Reference no: EM132617628

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