Contingent Liabilities

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• How to account for and report on contingent liabili

  253834 How to Account for and Report on Contingent Liabilities Describe how to account for and report on contingent liabilities. Accounting for contingent liabilities is not an exact science.

• Impacts of Contingent Liability

  Consider the features of contingent liabilities and respond to the following: - Explain how contingent liabilities impact financial decisions. Give examples.

• Report to investors in the annual report on firm's litigation risks

  Law suits facing Philip Morris amount to contingent losses and Porter & Norton (2009) provide that contingent liabilities should be recognized in financial statements if contingent liabilities are probable and can be reasonably estimated.

• Describe current liabilities that must be estimated

  The other two involve estimates: Estimated liabilities Contingent liabilities Estimated liabilities are those which are based on some future event that isn't known for certain yet. Warranties are a good example.

• This is a discussion on estimated current liabiltiies.

  Contingent liabilities are potential liabilities that depend upon future events before becoming actual liabilities.

• Interpreting K-1 filings for ratios and disclosure

  Identify and discuss at least 1 contingent liability. You will also find applicable disclosures for all contingent liabilities.

• Contingent liabilities

  14829 Contingent liabilities Why do organizations need to account for contingent liabilities?

• Contingent Liability - Determine the probability of an event

  Contingent liabilities are accounted for according to the judgment of management about the probability of the contingent obligation's becoming an actual obligation.

• Audit: Contingent Liabilities

  A number of companies have pending lawsuits or other contingent liabilities reported in their financial statements. Search the EDGAR database to find a 10-K that reports a contingent liability.