Question: US GAAP and IFRS differ on when and how a loss contingency should be accrued. Which of the following statement is most correct? A. When

US GAAP and IFRS differ on when and how a loss contingency should be accrued. Which of the following statement is most correct?

A. When a contingent loss is more likely than not expected to happen and a range has been identified with all amounts having equal probability, then in all instances US GAAP requires that the bottom of the range be accrued in the financial statements while IFRS requires that the average of the range be accrued in the financial statements.

B. When a contingent loss is probable and a range has been identified with all amounts having equal probability, then in all instances IFRS requires that the average of the range be accrued in the financial statements.

C. When a contingent loss is more likely than not expected to happen and a range has been identified with all amounts having equal probability, then in all instances US GAAP requires that the average of the range be accrued in the financial statements.

D. When it is not the case that a contingent loss is more likely than not expected to happen and it is the case that a range has been identified with all amounts having equal probability, then in all instances both US GAAP and IFRS require a note disclosure that includes the range.

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