On December 31, 2013, Braino Tech. Inc. learned that its competitor had introduced a product using an

Question:

On December 31, 2013, Braino Tech. Inc. learned that its competitor had introduced a product using an accessory to which Braino has exclusive patent rights. Braino planned to file suit and its attorneys estimated that Braino should recover at least $500,000. Braino's December 31, 2013, year-end were issued March 2, 2014. At that date, Braino still planned to file suit, even though it had not yet done so.
Required:
Next Level Discuss the accounting treatment in regard to the 2013 of Braino Tech. called for by concerning the described circumstances. Be sure to conceptually justify this treatment.
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... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...