Vignette III

Dead River Inc. has a $1,000,000 note payable due to its founder, Marvin Morton. Mr. Morton recently died, and Dead River Inc.'s executive team has not been able to establish whether or not there are any heirs to Mr. Morton's estate. Dead River Inc. has solicited your professional opinion as to whether it is appropriate to derecognize the liability from its financial statements.

Respond to Dead River Inc. Describe the applicable guidance requirements, including excerpts as needed to support your response.