Notes 5 - o Probable Record and footnote • Deferred taxes...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Balance Sheet: Liabilities Contingencies: o Potential losses and gains whose resolution depends on one or more future events o When do we put contingent liabilities on B/S? Information prior to issuance of financials indicates probable asset impairment or liability Or the amount of the contingent liability/ loss o Remote: Ignore o Reasonably possible: Disclose in footnote As analyst, would want to include this in ratios (full amount)
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: o Probable: Record and footnote • Deferred taxes and related disclosures: o What are taxable income and NI not equal? Congress doesn’t care about matching revenues and expenses They want to raise company revenues o Companies report receivables as NI But they can’t pay taxes on that just yet, until they receive it… Becomes deferred tax liability...
View Full 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