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A plan for liquidation has been approved by the court. Does that make liquidation imminent according to the standard set by FASB? Multiple choice question.
A plan for liquidation has been approved by the court. Does that make liquidation imminent according to the standard set by FASB? Multiple choice question. Yes, approval of that plan makes liquidation imminent so that the liquidation basis of accounting must be used. No, the chance that this plan will be blocked or that the entity will return from liquidation also has to be remote. Yes, acceptance by the court is always sufficient evidence that the liquidation will take place
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