XCS Technologies is involved in cancer research. XCS is involved in a number of lawsuits related to its operations. For each case, indicate the disclosure that should be provided by XCS Technologies in the annual financial statement. One of their drugs, Hypothiaman, resulted in dangerous side effects of which XCS was unaware. As a result, a class-action lawsuit has been filed against XCS. XCS's attorneys feel it is probable that the company will lose the suit, and the amount can be reasonably estimated. a. XCS shall consider proper accounting treatment upon the final verdict of the case comes out. b. XCS shall take no action relative to this matter c. XCS shall disclose this fact in the notes to financial statements d. XCS needs to record a provision
13. XCS Technologies is involved in cancer research. XCS is involved in a number of lawsuits related to its operations. For each case, indicate the disclosure that should be provided by XCS Technologies in the annual financial statement. One of their drugs, Hypothiaman, resulted in dangerous side effects of which XCS was unaware. As a result, a class-action lawsuit has been filed against XCS. XCS's attorneys feel it is probable that the company will lose the suit, and the amount can be reasonably estimated.
a. XCS shall consider proper accounting treatment upon the final verdict of the case comes out.
b. XCS shall take no action relative to this matter
c. XCS shall disclose this fact in the notes to financial statements
d. XCS needs to record a provision
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