Chapter 8, Problem 8.56EIC

1.

To determine

The reason for not disclosing the contingent liability by Company.

2.

To determine

To Identify: The parties involved in the decision and the potential consequences to each.

3. a

To determine

To Analyze: The issue of whether to report contingent liabilities from lawsuits from the following standpoints

3. b

To determine

To Analyze: The issue of whether to report contingent liabilities from lawsuits from the following standpoints

3. c

To determine

To Analyze: The issue of whether to report contingent liabilities from lawsuits from the following standpoints

4.

To determine

The impact of future changes in accounting standards, both at the U.S. level and the international level, likely have on the issue of disclosure of loss contingencies.