Describe how to account for and report on contingent liabilities.© BrainMass Inc. brainmass.com June 3, 2020, 10:52 pm ad1c9bdddf
Accounting for contingent liabilities is not an exact science. In fact, the uncertainty of contingent liabilities are what make the subjective assessment of certain liabilities so difficult. One of the most understandable examples of a contingent liability is a legal dispute. The cost of litigation and eventual outcome is not an easily estimable liability. So, an accountant needs to produce the best ...
The solution describes how to account for and report on contingent liabilities.