There are many interesting company programs and circumstances that relate to the definition, recognition, and measurement of liabilities. Examples include customer loyalty programs, retail gift cards, corporate restructuring obligations, air miles programs, product liability lawsuits, liability accruals on interim financial statements, environmental liabilities, onerous contracts, and many employee benefit programs.

Instructions

Choose one of the programs or circumstances listed above. Research your choice using international and Canadian sources, and prepare a one-page summary of the liability recognition and measurement issues that are involved. If possible, identify any accounting standards that may help resolve the issues.