Reporting requirements for contingent liabilities under IFRS differ somewhat from those under U.S. GAAP. Required: For each
Question:
Reporting requirements for contingent liabilities under IFRS differ somewhat from those under U.S. GAAP.
Required:
For each of the following, access the online version of the indicated financial report and answer the question. Also compare reporting under IFRS to similar reporting under U.S. GAAP.
1. AU Optronics (Form 20-F, filed 3/21/2016): Where there is a continuous range of possible outcomes, with each point in the range as likely as any other, what amount is accrued as the estimate of the obligation?
2. B Communications LTD (Form 20-F, filed 4/19/2016): With respect to legal claims, at what probability level would B Communications accrue a liability for a possible litigation loss?
Contingent liabilitiesA 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...
Step by Step Answer:
Requirement 1 Per AU Optronics Form 20F filed 3212016 Where there is a continuous range of possible ...View the full answer
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
