View Policies Current Attempt in Progress Consider the following independent situations:. For each of the independent situations, indicate whether it should be recorded as a provision or disclosed in the notes to the financial statements (or both) as a commitment/contingent liability. A pending lawsuit for which a negative outcome has been estimated and determined to be "probable 2 A pending lawsuit, about which the outcome cannot be determined. 3. 4. A purchase commitment for future inventory purchases at a predetermined fixed price. A loan guarantee for a subsidiary company that has a strong credit rating. eTextbook and Media