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A liability that will arise in a future period because of any future event which is not certain is known as a contingent liability. Such liability is reported only when the amount of liability can be estimated, and there are possibilities of happening of such an event.

Option (d) is correct because GAAP reports the contingencies for the liabilities, and the IFRS reports the liability arising from the past event as provision.

1. Option (a) is incorrect because,under the GAAP, the business entity uses a separate account to record the bond discount in the balance sheet. Such an account is reported as a contra-liability account, and the amount is deducted from the liability account while reporting into the balance sheet. While under IFRS, the bonds payable are reported at net value, and no additional account is reported for discount.
2. Option (b) is incorrect because the business entity reporting under GAAP capitalizes the issuance cost and amortizes it over the bond's life. While under IFRS the business entity reports the bonds payable after deducting the discount that will reduce the carrying value of the bond payable.
3. Option (c) is correct because the GAAP only uses the terminology 鈥渢rouble debt restructuring鈥� while IFRS restricting is considered a debt extinguishment.