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Unformatted text preview: 1. Must adhere to the full disclosure principle which required information relevant to decision making be reported and not ignored 2. Potential legal claims a) Recorded in the accounts only if payment for damages is probable and amount of payments can be reasonably estimated 3. Debt guarantees a) Guarantees the payment of a debt owed b) Guarantor discloses the guarantee in financial statements as a contingent liability 4. Uncertainties a) Example: natural disasters b) Not contingent liabilities because they not future events that do not arise from past transactions...
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This note was uploaded on 02/09/2012 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.
- Fall '10