What type of disclosure or accounting do you believe is necessary for the following items? a. Because of a general increase in the number of labor disputes and strikes, within and outside the industry, there is an increased likelihood that a company will suffer a costly strike in the near future. b. A company reports a material unusual and infrequent loss on the income statement. No other mention is made of this item in the annual report. C. A company expects to recover a substantial amount in connection with a pending refund claim for a prior year's taxes. Although the claim is being contested, counsel for the company has confirmed the client's expectation of recovery.
What type of disclosure or accounting do you believe is necessary for the following items? a. Because of a general increase in the number of labor disputes and strikes, within and outside the industry, there is an increased likelihood that a company will suffer a costly strike in the near future. b. A company reports a material unusual and infrequent loss on the income statement. No other mention is made of this item in the annual report. C. A company expects to recover a substantial amount in connection with a pending refund claim for a prior year's taxes. Although the claim is being contested, counsel for the company has confirmed the client's expectation of recovery.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What type of disclosure or accounting do you believe is necessary for the following items?
a. Because of a general increase in the number of labor disputes and strikes, within and outside the industry, there is an increased likelihood that a company will suffer a costly strike in the near future.
b. A company reports a material unusual and infrequent loss on the income statement. No other mention is made of this item in the annual report.
C. A company expects to recover a substantial amount in connection with a pending refund claim for a prior year's taxes. Although the claim is being contested, counsel for the company has confirmed the client's expectation of recovery.
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