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Question · Disclosure of contingent liabilities and assets

Kaysmorel is claiming 3,500,000 from an insurer for a loss event; its lawyers consider it probable, though not certain, that compensation will be obtained, but no reliable estimate of its amount is practicable at the reporting date. The communications department proposes the sentence: "significant exceptional income is expected in 20X6". Write the note on this contingent asset and comment on the proposed sentence.

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Judgment question: compare your answer with the criteria and the model explanation.

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