Answered: Define and explain multiple performance…

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15FSI: Financial Statements For Mornin' Joe International

Section: Chapter Questions

Problem 3DQ

See similar textbooks

Related questions

Question

Define and explain multiple performance obligations.

Discuss the accounting concepts behind reporting unearned income.

Discuss how to report contingent liabilities.

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Expert Solution