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Unformatted text preview: more future events to confirm either the amount payable or the payee or the date payable or its existence. The condition had to exist at the balance sheet date. Information has to be available prior to issuing financial statements. 1. Probability that the future event or events will confirm the incurrence of a liability can be classified as: a. Unlikely. b. Likely. A liability is recorded if the information indicates that it is likely that a liability had been incurred at the balance sheet date, and the amount of the resulting loss can be reasonably estimated . c. Not determinable. 2. If a loss contingency is either likely or estimable but not both, and if there is a reasonable possibility that a liability may have been incurred, the following disclosure is suggested. a. The nature of the contingency. b. An estimate of the possible loss or range of loss or a statement that an estimate cannot be made....
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- Spring '10