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11006664How to make a memorandum to inform austin motors of specific

contingent liabilities arising from the business.

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LONG TERM DEDI
Austin Motors is located in Victoria, British Columbia, and is the only Austin dealer in western
Canada. The dealership repairs and restores Austin vintage cars. Hal Irwin, the general manager, is
considering changing insurance companies because of a disagreement with Len Legrew, an agent
for the Dominion of Canada Insurance Company. Dominion is doubling Austin Motors' liability
insurance cost for the next year. In discussing insurance coverage with you, a trusted business
associate, Legrew brings up the subject of contingent liabilities.
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Top Answer

The IAS 37.10 code defines a contingent liability as a present obligation but payment is not probable or the amount cannot be... View the full answer

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