Why does gaap require that certain loss contingencies

Assignment Help Accounting Basics
Reference no: EM131793494

Auditing Theory - Completing the Audit

ASC 450 defines a contingency as an existing condition, situation, or set of circumstances involving uncertainty as to possible gain or loss to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur.

Why does GAAP require that certain loss contingencies (but not gain contingencies) be recorded and disclosed even though the outcome is uncertain?

Reference no: EM131793494

Questions Cloud

Calculate the future value of the given cash flow stream : Calculate USING EXCEL the future value of the following cash flow stream if the opportunity cost rate is 8%: $ 100 at the end of the first year.
Analyze the major issues facing the company : Analyze the major issues facing the company. In what way does the Statement of Cash Flows help you to interpret the ratios and financial performance of company?
Compute the break-even sales : Candies Inc. manufactures and sells two products, marshmallow bunnies and jelly beans. Compute the break-even sales (units) for the overall product, E
What is the ear if the loan compounds continuously : If you take out a bank loan with a 17% quoted nominal interest rate that is compounded semiannually what is the effective annual rate (EAR)?
Why does gaap require that certain loss contingencies : Why does GAAP require that certain loss contingencies (but not gain contingencies) be recorded and disclosed even though the outcome is uncertain
What types of opportunities are available for nurses : How is this information system used to support research? If it is not currently being used to support research, how could it be used in the future?
Compute the current break-even sales : Currently the unit selling price of a product is $300, the unit variables cost is $225, Compute the current break-even sales (units)
Problem on valuation of a constant growth stock : What is its value if the previous dividend was D0 = $3.75 and investors expect dividends to grow at a constant annual rate?
What is the total amount leven would pay on maturity date : The loan is due October 1, 2010, and carries a 6.86% interest rate. Use ordinary interest to calculate the interest. What is the total amount Leven would pay

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the costs of this job order in the raw materials

the job cost sheet for 1000 units of toy trucks is job number 555 date started 413 date completed 618 raw materials

  Total amount of manufacturing costs

What was the total amount of manufacturing costs assigned to the 5,000 units in the ending work in process?

  Calculate pope enterprises

Pope reported cost of goods sold of $925,000.

  Does the company have an audit committee

ACC 302 Auditing & Assurance Team Assignment. Does the company have an audit committee and does the audit committee have the correct composition

  Could the company report only as an asset

when long-lived assets are purchased with a loan, can a company report the net difference between the cost of the asset and the mortgage liability against the asset, instead of reporting the two amounts separately on the balance sheet?

  Analyze the challenges an organization faces to motivate

analyze the challenges an organization faces to motivate employees in todays economic and competitive environments.

  Review problem related to devin wolf company

Devin Wolf Company has the following balances in selected accounts on December 31, 2017.

  What should be the carrying value of montana inventory

Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. What should be the carrying value of Montana's inventory

  What is the face value of the note

A company acquired land with a Fair Market Value of $220,000 on 1/1/14, What is the face value of the note

  Account work the anz bank share code anzax expects to pay a

the anz bank share code anz.ax expects to pay a dividend of 0.91 ltbrgttoday and dividends are expected to grow at 6

  Determine the rate earned on total assets the rate earned

profitability ratios the following selected data were taken from the financial statements of squiggle group inc. for

  Compute the materials price and quantity variances

The company has recently established a standard cost system to help control costs Compute the materials price and quantity variances

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd