Under IFRS, if a company can determine a reasonable estimate of an expected loss from a lawsuit and it is probable it will lose the suit, it should

A) disclose the basic facts regarding the suit in the notes to its financial statements.
B) accrue the loss.
C) neither disclose in the notes nor accrue the loss.
D) pay the amount estimated.

IFRS

International Financial Reporting Standards, which are designed to bring consistency to accounting language, practices, and statements on a global scale.

Expected Loss

An estimated amount a company anticipates losing due to credit risk or other potential business risks.

Lawsuit

A legal action taken by one person or entity against another person or entity, typically in a court of law, over a dispute.