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Unformatted text preview: included as a part of income because of the revenue recognition principle. Note disclosures are made for gain contingencies. The two conditions that must be met before a loss contingency can be charges against income are: (1) It is probable prior to the issuing financial statements that an asset will become impaired or a liability will occur at the date of financial statements. (2) The amount of the contingency can be reasonably estimated....
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This note was uploaded on 07/15/2011 for the course ACC 541 taught by Professor Chrismoody during the Spring '11 term at University of Phoenix.
- Spring '11