{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

M351_Notes-Day_3_Cur_Liab

M351_Notes-Day_3_Cur_Liab - M351 Notes Class 3 Current...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
M351 Notes, Class 3: Current Liabilities and Contingencies, pp. 631-647 A. Gain Contingency: only tax loss carryforward are recognized; other gain contingencies on page 632. B. Loss Contingency: an event that may produce a future payable/payment has occurred but one or more future events are required to confirm or remove the loss contingency. 1. GAAP uses three terms to identify the likelihood that a loss contingency will be confirmed: a. Probable —the future event or events confirming the loss is/are likely to occur b. Reasonably possible —the future event or events confirming the loss is/ are more likely than remote but less likely than probable c. Remote —the possibility is slight that the future event or events confirming the loss will occur 2. When the contingent loss is probable and reasonably estimable , the company should recognize (expense and payable) the expected amount of the loss. Disclosure in the notes to the financial statement may also be prudent.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern