This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Litigation Expense 1,790,000 Litigation Liability 1,790,000 Requirement 3: If the settlement were to have occurred after the issuance of the financial statements, under FASB 450-20-50-10, SkillSoft would only footnote the lawsuit in its 1/31/06 statements because the amount of the settlement was not able to be estimated 2 . They would accrue the liability on the date of the settlement and be included in the 1/31/07 financial statements. The statements for 1/31/07 should also -contain disclosure notes relating to the details of the settlement. 1 "Financial Accounting Standards Board." FASB . Web. 28 Jan. 2010. <http://asc.fasb.org/section&trid=2127173%26analyticsAssetName=subtopic_page_section%26nav_type=subtopic_page>. Article 450-20-25-6 2 Ibid. 1. Article 450-20-50-10...
View Full Document
This note was uploaded on 02/24/2010 for the course ACCT 311 taught by Professor Seese during the Spring '10 term at Old Dominion.
- Spring '10