15. ABC Co. started work on two separate projects during 20x1. Information on these projects is shown below: Project A B Contract price 9,000,000 8,000,000 Costs incurred 4,000,000 5,000,000 Estimated costs to complete 4,000,000 Progress billings 5,000,000 8,000,000

Q: Determine when a liability can be classified as a noncurrent obligation.

A: Liabilities are obligations arising from past transactions and payable in assets or services in…

Q: FAR 32 provides the policies and procedures for contract financing. Explain three primary means of…

A: Contract financing refers to the payment received against contracts. FAR 32 is the part of contract…

Q: Identify the various types of split-interest agreements and describe accounting practices for each.

A: Split-interest agreements: Split-interest agreements, often known as planned giving, are…

Q: Under what conditions should a contingent liability berecorded?

A:

Q: When a contract includes an option to buy additional goods or services, when does that option give…

A: Contract: Contract is a written document that creates legal agreement between the parties for buying…

Q: What is the difference in Forward Contracts and Future Contracts

A:

Q: Why would the existence of conditions subsequent and precedent affect the discharge of a contract?

A: A contract is an agreement between more than one person to perform the duties mentioned in the…

Q: compare the disclosures relating to fi nance and operating leases;

A: The IAS 17 defines the disclosures required by operating and financing lease and the accounting…

Q: Explain the accounting for contract modifications.

A: Contract modification may occur when any addition, change or cancellation of specific terms and…

Q: What controversy relates to the accounting for net operatingloss carryforwards?

A:

Q: Briefly explain the conditions when a contract modification shall be accounted for as a separate…

A:

Q: Youth Athletic Services (YAS) provides adult supervision for organized youth athletics. It has a…

A: Income Statement- An income statement is a financial statement that shows an organization's income…

Q: What are the two subsequent measurement for financial asset? Who are part of the contract of lease

A: The financial assets is the kind of liquid assets that gets its value from the right of the contract…

Q: To be recorded as a liability, does the obligation have to be absolute?

A: Accounts payable, short-term loans, interest payments, bank overdrafts, and other similar short-term…

Q: What are the types of agreement related to sale-leaseback agreement?

A: Sale and Leaseback Agreement is a kind of financial transaction. This is a situation that arises…

Q: Which Business Form Has The Advantage Af Limiled Liability?

A: Limited liability is a legal principle that protects business owners from being personally…

Q: What are the two basic methods of accounting for longtermconstruction contracts? Indicate the…

A:

Q: Is variable consideration included in the calculation of a contract’s transaction price? If so, how…

A:

Q: Pursuant to the conceptual framework, for an item to be characterised as a liability the definition…

A: Two Examples of Liabilities: 1) Trade payables: Satisfy all the three essential characteristics of…

Q: Determine whether a contract exists, and whether some frequently encounteredfeatures of contracts…

A: A contract exists when it has commercial substance and all parties to the contract are committed to…

Q: What differentiates a current liability from a long-term liability? Share at least two examples of…

A: Any type of debt that a company owes to a person or another company is referred to as a liability.…

Q: Are monetary obligations under a contract of surety intransmissible by their nature, by stipulation,…

A: Contract of surety relates to the contract of guarantee a contract is to perform the promise or…

Q: What is a Liability? Describe different types of Liability a company can have with examples.

A: A liability is a responsibility of a company happen due to a past incident done by the company. For…

Q: Which one of the following is a special type of liability? a. Accrued expenses b. Salaries payable…

A: Accrued expense: These are those expenses which due but not yet paid.This is short term liability…

Q: Discuss the circumstances that require a contingent liability to be disclosed in the notes to the…

A: A contingent liability is a liability that may (or may not) occur in future.   The occurrence of…

Q: Discuss the factors that impact on whether an agreement with a supplier is considered to be a…

A: An agreement with supplier : An agreement with the supplier is a agreement between the two persons,…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.