E8-29B (book/static) Question Help Diamond Security Systems' revenues for 2018 totaled $275 million. As with most companies, Diamond is a defendant in lawsuits related to its products. Note 14 of the Diamond annual report for 2018 reported the following (Click the icon to view the note) Read the requirements Requirement 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? First, let's decide how the lawsuit should be reported in the financial statements The lawsuit should Click to select your answer(s) and then click Check Answer 1 part I remaining Clear All Check Answer 1717171717112122 A S SISSISSISSISISISISISIS E8-29B (book/static) Que Diamond Security Systems' revenues for 2018 totaled $27.5 million. As with most companies, Diamond is a defendant in to its products. Note 14 of the Diamond annual report for 2018 reported the following (Click the icon to view the note.) Read the requirements Requirement 1. Suppose Diamond's lawyers believe that a significant legal judgment against the company is reasonably should Diamond report this situation in its financial statements? i Requirements X 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 US GAAP)? Check Answe Done Print OO lo e a 9 E8-29B (book/static) Question Help Diamond Security Systems' revenues for 2018 totaled $27.5 million. As with most companies, Diamond is a defendant in lawsuits rela to its products Note 14 of the Diamond annual report for 2018 reported the following (Click the icon to view the note.) Read the requirements Requirement 1. Suppose Diamond's lawyers believe that a significant legal judgment against the company is reasonably possible. Ho should Diamond report this situation in its financial statements? First, let's decide how the lawsuit should be reported in the financial statements The lawsuit should be reported by accruing a liability be reported by accruing a liability and including a note be reported by including a note similar to Note 14 not be reported Click to select your part remaining Clear All Check Answer b et e a * 9 V INNV /SASSINANSISISISISISISISINE i 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)? Print Done Plear O Bi e a
