Inclusion of possible liability on the books of hartman

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Reference no: EM131251001

Hartman Industries just finished their most recent board meeting and during the meeting a discussion evolved concerning a pending lawsuit against Hartman. The initial filing of the suit was thirty days ago and the local newspapers and television stations have been keeping the issue in the public eye for the past two weeks. Hartman's legal team has been buzzing over a possible defense and countersuit based on perceived defamation of Hartman's corporate name and reputation. The CFO was asked to join the board meeting along with the Vice President of Legal Affairs for their consideration of including information about the lawsuit in the upcoming financial statements.

Which considerations should promote the inclusion of a possible liability on the books of Hartman?

A. If the Marketing division notes that public perception has significantly decreased since the lawsuit has been filed.

B. If the CFO has reasonable assurance that the pending lawsuit will be extending into the next fiscal year and that critical information will be admissible in court.

C. If the Legal division can estimate the total cost of outside counsel necessary to win or settle the case.

D. None of the other answers

E. If the Finance division has determined that the potential loss is probable, and they can reasonably estimate the settlement/loss based on similar litigation of other companies in their industry.

Reference no: EM131251001

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