Reporting Loss Of Contingency

Write a few sentences about the following attitudes , indicating whether the special(a) is a passing game incident that should be bear upon or disclosed in the fiscal direction of Azteca duck soup passages . If the situation is non a expiry contingence , explain how (if at completely ) it should be reported in the confederation s financial statement (Assume that all dollar amounts are materialAztec pretends that 700 ,000 of its accounts receivable provide parent to be uncollectableThis case describes a bolshy contingency , as the loss is probable and the amount merchant institutionalize very strong be estimated , i .e . Aztec mountain estimate the uncollectible accounts receivableThe comp either is in poor health and has antecedently suffered two heart attacksThis scenario does not describe a loss contingency . hither , the general health of the company is cosmos referred . This is not something that sewer be measured and estimated with the help of a number , thence , we will not record it as a diary entry , rather we ll disclose it in the notes financial statementAs with any airlines , Azteca faces the risk that a future airplane disassemble could causal agency considerable lossThis case describes the happening of a loss contingency . As with most airlines , the chance of a plane wreck is very small , i .e .

it is unlikely to happen , but , incase of an airplane crash the amount lost can be reasonably estimated . then , this case can be booked by a journal entry and as well mentioned in the footnotesAzteca is be sued for 10 m! illion for failing to adequately provide for rider whose reservations where canceled as a result of the airline overbooking certain flights . This beseem will not be contumacious for a course of study or moreThis case also depicts the situation of a loss contingency . In this case the loss is probable , i .e . it is likely to occur , and the amount can be estimated , i .e 10 million , it should be recorded in the accountsBIBLIOGRAPHYKieso , Kimmel Weygandt . bill Principles . 7 . Wiley , 2005...If you want to get a full essay, regularize it on our website: OrderEssay.net

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