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Loss/Gain contingencies

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Generally accepted accounting principles (GAAP) require loss contingencies to be accrued in the period the contingency becomes known. However, GAAP specifically disallows booking gain contingencies until the gain is realized. Do you agree or disagree? Why?

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The solution explains the accounting treatment of loss/gain contingencies

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Agree. This is based on the conservatism principle which states - recognize revenue only ...

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