CERTYNEX IFRS ACADEMY

Lorcane is training its accountants on the treatment of claims it brings against third parties. Which of these propositions should be retained?

A contingent asset is recognised as income as soon as its inflow is probable.

A legal claim brought by the entity, with an uncertain outcome, may be a contingent asset.

A contingent asset is not recognised.

A contingent asset is disclosed in the notes as soon as its inflow is merely possible.

A contingent asset whose inflow is probable is disclosed in the notes.