Rogers Communications Inc. provides cell phone and cable access to consumers, operates radio and television stations, publishes consumer magazines and professional publications, and owns the Toronto Rlue Jays baseball club. Details of Rogers' contingent liabilities are shown in Exhibit 9-9, which presents two portions of Note 24 to its 2009 financial statements.
Required:
a. Summarize the series of events related to the Part II fees described in part (A) to the note. When were amounts expensed or recorded as liabilities, and when were amounts reversed? What caused Rogers to record the Part II fees as expenses in some periods and not record them in other periods? Was there good matching of the expenses with the revenues that gave rise to them throughout the period from 2003 to 2009? Explain.
b. For the lawsuit related to FIDO described in part (E), do you think Rogers accrued an estimated liability for the lawsuit between 2004 and 2009? Support your answer.