S9-5. (Learning Objective 1: Interpreting a companys contingent liabilities) OC Petroleum Inc., an oil company, included a
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S9-5. (Learning Objective 1: Interpreting a company’s contingent liabilities) OC Petroleum Inc., an oil company, included a disclosure in its annual report stating that it was denying a variety of litigations from environmental groups that arose following an incident on one of their rigs in the Gulf of Mexico.
How can a contingency liability become a real liability for the company? What would be the impact on the financial statements if these claims are recognized as a provision instead of contingent liability?
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Related Book For
Financial Accounting International Financial Reporting Standards Global Edition
ISBN: 9781292211145
11th Edition
Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison
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