To think critically about: The guarantees by the government of Country U that are not shown in the calculations of the spending by the government or in the official deficit. Introduction: The potential liability that occurs based on the result of a future event that is not certain is called contingent liability .

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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.

Chapter 24, Problem 10CRCT

Summary Introduction

To think critically about: The guarantees by the government of Country U that are not shown in the calculations of the spending by the government or in the official deficit.

Introduction:

The potential liability that occurs based on the result of a future event that is not certain is called contingent liability.

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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.

Chapter 24, Problem 10CRCT

Summary Introduction

To think critically about: The guarantees by the government of Country U that are not shown in the calculations of the spending by the government or in the official deficit.

Introduction:

The potential liability that occurs based on the result of a future event that is not certain is called contingent liability.

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Check out a sample textbook solution

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Answer 3

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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.

Chapter 24, Problem 10CRCT

Summary Introduction

To think critically about: The guarantees by the government of Country U that are not shown in the calculations of the spending by the government or in the official deficit.

Introduction:

The potential liability that occurs based on the result of a future event that is not certain is called contingent liability.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

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.

Chapter 24, Problem 10CRCT

Summary Introduction