Earnings other 2028 496966 919210 total liabilities

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: earnings Other 2,028 496,966 $919,210 Total liabilities & stockholders’ equity 2,041 636,432 Total stockholders’ equity $675,378 Contingencies • An existing, uncertain situation that might result in a loss or gain for a firm. - If the existing, uncertain situation might result in a loss we call it a contingent liability. - If the existing, uncertain situation might result in a gain we call it a contingent gain. Contingent Liabilities • Whether we report a contingent liability depends on two criteria: - The likelihood of having to pay, which can be: ✓ Probable ✓ Reasonably possible ✓ Remote - and the ability to estimate the amount of the payment, which can be: ✓ Reasonably estimable ✓ Not reasonably estimable Contingent Liabilities • Whether we report a contingent liability depends on two criteria: Reasonably estimable Not reasonably estimable Record liability and disclose details in footnotes Disclose information in footnotes Reasonably possible Disclose information in footnotes Disclose information in footnotes Remote No disclosure required No disclosure required Probable Contingent Liabilities The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and have not been fully adjudic...
View Full Document

This note was uploaded on 02/17/2014 for the course ACCTG 215 taught by Professor Wells during the Spring '08 term at University of Washington.

Ask a homework question - tutors are online