Suppose the Environmental Protection Agency is in the process of investigating Ozone Ruination Limited for possible environmental damage but has not proposed a penalty as of December 31, 2020, the company’s fiscal year-end. Describe the two-step process involved in deciding how this unasserted assessment should be reported.

Q: 74. Which of the following is a peculiar general purpose financial statement of government entities?…

A: Financial statements are those statements which are prepared at the end of the period in order to…

Q: Key note from review of director meeting minutes:     The chairman observed that in recent…

A: As per the review of the director, there is the problem of limitation of scope and if there is any…

Q: Concord Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents…

A: Useful life is defined as the total period for which a resource can be used in the operations of a…

Q: The following statement is TRUE / FALSE (circle one): Effective for fiscal years beginning after…

A: Accounting standard means the rules and regulation according to which the books of accounts are kept…

Q: Which of the following must exist in order for a government to use the modified approach for…

A: The GASB is the board that provides the guideline to the governmental units about proper accounting…

Q: Part B: In your audit of Melbourne Ltd for the calendar year 2021, you found some matters that you…

A: 1. The ISA 560 deals with subsequent events. There are two types of subsequent events that occur…

Q: Determine the following as a result of your audit: 16. How much is the cost of Land disclosed in its…

A: Here given the multi sub part question as per guidelines we will solve for first three sub part…

Q: Key notes from review of director meeting minutes               3. 12/03/19 The…

A: As per the review of the director, the auditors will consider it as a going concern problem as if…

Q: Dow Chemical was sued for infringing Bayer Industries' patent No. 123X45 in March of 2019. Dow's…

A: Given: The lose and damages value are found to be $4,000,000  and $7,000,000.  The cash settlement…

Q: Presented below is a note disclosure for Matsui Corporation. Litigation and Environmental: The…

A: a. The conditions that must exist before a loss contingency can be recorded in the accounts are as…

Q: Based on the above and the result of your audit, answer the following: (Disregard tax implications)…

A: 3. Depreciation expense of Asset P for the year 2020 = P14500   Depreciation expense of Asset R for…

Q: Analyze the following: I – All entities that issue an annual report may issue interim financial…

A: An entity prepares financial statement at the year-end which shows many components in summaries or…

Q: During 2020, SBD closed facilities which were made redundant by the acquisition of Niscayah. Assume…

A: Journal Entries: The recording of financial transactions for the first time in books of accounts…

Q: Note: For all scenarios, support your answers with citations from the authoritative IFRS and U.S.…

A: Provisions are liabilities of uncertain timing or amount that are recognized by companies under both…

Q: Profit before tax for Juventus is estimated at $3,000,000 for the year ended June 30, 2019, during…

A: Performance materiality is generally determined by dividing an item by the net earnings. A…

Q: The Department and Board may remove a license limitation as soon as the next license cycle begins.…

A: Introduction; Public Act 33 of 2022: The decision to place limitation, the petition to review, and…

Q: Who are "accelerated filers," exactly, and what criteria (such as annual revenue or staff count) are…

A: Accelerated Filers -                               Accelerated filers are U.S. public companies that…

Q: Suppose the Environmental Protection Agency is in the process of investigating Ozone Ruination…

A: Contingent Liability Contingent liability is one form of liability that arises based on a particular…

Q: engagement. Smith and Johns would most probably inquire the predecessor auditor about the following…

A: Audit :- Companies record the transactions of the business everyday from the date of starting the…

Q: William Jackson, the CEO of RPL, has requested that the tests of controls only be performed once due…

A: Audit Evidence Evidence gained for a company's financial transactions, internal control procedures,…

Q: Which one of the following would not be valid grounds for a provision? A. A company has always…

A: Provision means an amount set side now to be payable in future because of some past event and…

Q: The review of minutes and confirmation letter obtained from the legal counsel of the company…

A: The issues stated above relates to provisions and contingencies.It do not relates to accounts…

Q: December 31, 2022, the product was removed from the market under governmental order because of a…

A: This question deals with the IAS 38 "Intangible asset" As per IAS 38, intangible asset needs to…

Q: Suppose the Environmental Protection Agency is in the process of investigating Ozone Ruination…

A: Contingent Liability Contingent liability is one form of liability that arises based on a…

Q: Consider the following information from a company's records for 2020: Materials used in research and…

A: R&D expenses are typically accounted for on a company's income statement. They are considered…

Q: Under IFRS 15, assuming the outcome of construction can be estimated reliably, what is the realized…

A: The phrase "construction in progress," or "CIP," refers to continuing construction expenses that…

Q: In accounting for research and experimental expenditures incurred in 2021, all of the following…

A: Answer  Research and development expenditure incurred during the year can be expensed in the year of…

Q: audit risk

A: Audit risk is outlined as 'the risk that the auditor is Associate in Nursing applicable audit…

Q: The Company believes that there are no compliance issues associated with applicable environmental…

A: Provision is a type of accrued liability. An entity record a liability as accrued liability or…

Q: materiality level

A: Option a is wrong because the auditor can not measure the amount of undetected misstatements. Option…

Q: Mawn Company bought and and built a warehouse during 2019. It improperly debited the following…

A: A correcting entry is a journal entry that is prepared to fix an error that was previously recorded…

Q: What does interim testing mean? Give some examples of substantive tests that can be done before the…

A: Substantive tests are those which are conducted by the auditor to assess account balances and…

Q: In reviewing of subsequent events, you learned of heavy damage to the client’s warehouse due to a…

A: An audit opinion is a formal statement issued by an independent auditor expressing their opinion on…

Q: 2019 1. A company must prepare an HGB financial statement as of December 31, t1. The company is…

A: The money will be moved from the company's cash account to the provisions account, which was…

Q: In 2019, A.M.E. Corporation's accountant incorrectly expensed  the cost of a major repairs to one of…

A: When ever any major repair is done on any fixed assets  which would increase the capacity of that…

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.