Diamond Security Systems revenues for 2021 totaled $27.5 million. As with most companies, Diamond is a defendant
Question:
Diamond Security Systems’ revenues for 2021 totaled $27.5 million. As with most companies, Diamond is a defendant in lawsuits related to its products. Note 14 of the Diamond annual report for 2021 reported the following:
Requirements
1. Suppose Diamond’s lawyers believe that a significant legal judgment against the company is reasonably possible. How should Diamond report this situation in its financial statements?
2. Suppose Diamond’s lawyers believe it is probable that a $2.8 million judgment will be rendered against the company. In general terms, how would this situation be reported in Diamond’s financial statements (using U.S. GAAP)?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Req 1 Diamond Security Systems should report this situation in a note to the financial state...View the full answer
Answered By
Parvesh Kumar
I am an experienced Mathematics and Statistics tutor with 10 years of experience teaching students and working professionals. I love teaching students who are passionate to learn subjects or wants to understand any mathematics and statistics concept at graduation or master’s level. I have worked with thousands of students in my teaching career. I have helped students deal with difficult topics and subjects like Calculus, Algebra, Discrete Mathematics, Complex analysis, Graph theory, Hypothesis testing, Probability, Statistical Inference and more. After learning from me, students have found Mathematics and Statistics not dull but a fun subject. I can handle almost all curriculum of mathematics. I did B.Sc (mathematics), M.Sc (mathematics), M.Tech (IT) and am also Gate (CS) qualified. I have worked in various college and school and also provided online tutoring to American and Canadian students. I look forward to discussing with you and make learning a meaningful and purposeful
4+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
