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Unformatted text preview: about the risks that are assumed as a result of issuing guarantees. TEACHING TIP The accounting treatment of loss contingencies can be summarized with the aid of Illustration 13-1. G. Financial Statement Disclosure of Current Liabilities 1. The current liability accounts are generally the first classification in the equity section of the balance sheet. 2. Current liabilities are frequently listed in order of maturity, according to amount, or in order of liquidation preference. 3. Areas that warrant additional disclosure are: a. Assets pledged as collateral for secured liabilities. b. Purchase commitments. c. Short-term obligations expected to be refinanced. d. Loss contingencies for which a liability has not been recorded....
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- Spring '10