Under disputed recoverables disclosure requirements, which statement is correct?

• A. Only the amount in dispute from any single entity must be disclosed
• B. Only the aggregate of all disputes must be disclosed
• C. Both the per-entity disputes and the aggregate disputes must be disclosed
• D. No disclosure is required unless disputes exceed 20%

Answer: (C)

Disclosures about disputed recoverables should show both the amount disputed with each counterparty and the total amount disputed across all recoverables. This dual approach gives a complete view of exposure: listing per-entity disputed amounts reveals concentration and credit risk with individual entities, while the aggregate figure communicates the overall potential impact if disputes are not resolved in the company’s favor. Providing both pieces of information helps readers assess how likely recoveries are and how much of the asset base could be affected. For multiple entities, you would present the dispute with each one and also the sum of all disputed amounts. There’s no fixed threshold that would justify omitting either level of detail, since even smaller disputes contribute to the overall risk profile.