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    Contingencies and Financial Statements

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    Do the current accounting rules regarding the booking of and disclosures about contingencies provide enough information for people using financial statement?

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    Contingencies are not appropriately disclosed on the financial statements of the company. This is partly because of the amount of uncertainties associated with contingencies. Thus a lot of management discretion is involved in their disclosure.

    There are two basic types of contingencies - a ...

    Solution Summary

    The solution evaluates the reporting of contingencies in financial statements.