7252569-MIdterm-1 (dragged) 16

7252569-MIdterm-1 (dragged) 16 - X 6 Actual or possible...

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Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 13-17 ILLUSTRATION 13-1 ACCOUNTING TREATMENT OF LOSS CONTINGENCIES Not May be Loss Related to: Accrued Accrued* 1. Risk of loss or damage of enter- prise property by fire, explosion, or other hazards X 2. General or unspecified business risks X 3. Risk of loss from catastrophes assumed by property and casualty insurance companies including re- insurance companies X 4. Threat of expropriation of assets X 5. Pending or threatened litigation
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Unformatted text preview: X 6. Actual or possible claims and assessments X 7. Guarantees of indebtedness of others** X 8. Agreements to repurchase receivables (or the related property) that have been sold X * Should be accrued when both criteria are met (likely and reasonably estimable). ** Estimated amounts of losses incurred prior to the balance sheet date but settled subsequently should be accrued as of the balance sheet date. Source: Kieso, Weygandt, Intermediate Accounting , Eighth Edition....
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This note was uploaded on 03/28/2012 for the course ACCTG ACC423 taught by Professor Smith during the Spring '10 term at University of Phoenix.

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