Increasingly, companies are becoming sensitive to environmental issues surrounding their business operations. They recognize that some of their actions can have detrimental impacts on the environment in ways that may not be fully understood for years or even decades. Environmental issues present complex problems for companies that must report contingent liabilities. A related article, Munter, Sacasas, and Garcia, "Accounting and Disclosure of Environmental Contingencies," January 1996, pp.

36-37, 50-52, from the CPA Journal (wwM.cpaj.com)* is available on the Libby/Libby/Short website at www.mhhe.com/libby4e. Read the article and prepare a brief memo concerning how companies should report environment issues in their financial statements.