Classify the following transactions and economic events for Sayabec Ltd as commitments, subsequent events, or contingent liabilities Some may fit more than one classification Indicate how each should be reflected in the December 31, 2017 financial statements and explain your reasoning In responding...

a The contract is a commitment that will have a substantial impact on business over the next three years It would be appropriate to disclose the contr ...

Classify the following transactions and economic events for Sayabec Ltd. as commitments, subsequent events, or contingent liabilities

Question:

Classify the following transactions and economic events for Sayabec Ltd. as commitments, subsequent events, or . Some may fit more than one classification. Indicate how each should be reflected in the December 31, 2017 and explain your reasoning. In responding, consider the usefulness of the information to different .
a. On December 15, 2018, Sayabec signed a three-year contract with a supplier to provide raw materials. The contract is the largest ever agreed to by Sayabec. The contract goes into effect in May 2018.
b. In May 2017, Sayabec guaranteed a $1,000,000 bank loan made to a company owned by a major shareholder. Sayabec is responsible for paying the principal and any outstanding interest in case the company is unable to make its payments. So far, the company has made all payments as required.
c. On January 10, 2018, a large customer declared bankruptcy. The customer had been in financial difficulty for some time. Sayabec expects to receive no more than 25 per cent of the amount owed by the customer.
d. On January 20, 2018, Sayabec announced that the board of directors had declared a of $0.25 per share. The is 20 percent higher than the last In November 2017, Sayabec was notified by the Canada Revenue Agency that it owed $459,000 in taxes related to the taxation years 2014 and 2015. Sayabec's ac countants say that the reassessment has no basis in fact. Sayabec is appealing the reassessment and plans to take it to court if necessary.

Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...