Question

What should be disclosed by way of notes to the Balance Sheet regarding contingent liabilities?

a.

It is not required to disclose contingent liabilities

b.

Contingent liabilities should be disclosed, but specific details are not necessary

c.

Detailed information on contingent liabilities should be provided

d.

Only acknowledged contingent liabilities need to be disclosed

Answer: (c).Detailed information on contingent liabilities should be provided Explanation:The guidelines specify that contingent liabilities should be disclosed by way of notes to the Balance Sheet, and detailed information on contingent liabilities should be provided.

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Q. What should be disclosed by way of notes to the Balance Sheet regarding contingent liabilities?

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