Chapter 9, Problem 2EI

1.

To determine

The reason for the Company for not disclosing the contingent liabilities.

2.

To determine

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

3. a

To determine

To analyse: The case from economic standpoint view.

3. b

To determine

To analyse: The case from legal standpoint view

3. c

To determine

To analyse: The case from ethical stand point view.

4.

To determine

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