Let us examine how companies report their current liabilities on their balance sheets and how they account for both loss and gain contingencies in the normal course of business.

1) Define liabilities and distinguish between current and long-term liabilities? Why is it important to distinguish these correctly?

2) Identify situations that constitute contingencies and the circumstances under which they should be accrued. Do you agree with the treatment for loss contingencies? Explain.

3) Discuss the primary differences between U.S. GAAP and IFRS with respect to current liabilities and contingencies? Can you please provide two specific examples of what is included?

Question

Let us examine how companies report their current liabilities on their balance sheets and how they account for both loss and gain contingencies in the normal course of business.

1) Define liabilities and distinguish between current and long-term liabilities? Why is it important to distinguish these correctly?

2) Identify situations that constitute contingencies and the circumstances under which they should be accrued. Do you agree with the treatment for loss contingencies? Explain.

3) Discuss the primary differences between U.S. GAAP and IFRS with respect to current liabilities and contingencies? Can you please provide two specific examples of what is included?

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Let us examine how companies report their current liabilities on their balance sheets and how they account for both loss and gain contingencies in the

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