Where there is a significant uncertainty with respect to the measurement of an item,
A. do not record anything in the financial statements.
B. recognize the item in the financial statements and disclose the measurement uncertainty in the notes to the financial statements.
C. do not record anything in the financial statements but disclose the measurement uncertainty in the notes to the financial statements.
D. record the maximum amount in the financial statements.
Answer:B
Where there is a significant uncertainty with respect to the measurement of an item,
A. do not record anything in the financial statements. B. recognize the item in the financial statements and disclose the measurement uncertainty in the notes to the financial statements. C. do not record anything in the financial statements but disclose the measurement uncertainty in the notes to the financial statements. D. record the maximum amount in the financial statements.