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In January 2021, Derick Co. gives a guarantee on a loan of Rose Corp. amounting to 3,000,000. During the year, the financial condition of the
In January 2021, Derick Co. gives a guarantee on a loan of Rose Corp. amounting to 3,000,000. During the year, the financial condition of the Rose deteriorates and at year-end, Rose files a petition for bankruptcy. In its year-end financial statements, Derick should a. Not accrue and need not disclose the guarantee b. Accrue and disclose the provision of P3,000,000 redmsoscal c. Accrue a provision for liability of P3,000,000 d. Disclose the possible loss of P3,000,000
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