1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ipn [44]
4 years ago
15

Blythe Corp. is a defendant in a lawsuit. Blythe's attorneys believe it is reasonably possible that the suit will require Blythe

to pay a substantial amount. What is the proper financial statement treatment for this contingency?
Business
2 answers:
8090 [49]4 years ago
7 0

Answer:

The entry is not required because the outcome is reasonably possible, not certain or probable. So IAS 37 says that the liability must not be recognized as the outcome is not reasonably certain or probable.

Explanation:

The liability must be included in the financial statement only if the outcome is certain or probable. In this scenario, the outcome is reasonably possible but neither certain nor probable in this situation. So the entry in the financial statement is not required. If the liability is of a huge amount then IAS 37 says that their must be a disclosure in the financial statement notes about the lawsuit.

Monica [59]4 years ago
4 0

Answer:

US GAAP requires that contingent liabilities (e.g. lawsuits) must be disclosed in the footnotes of the financial statements of Blythe Corporation. If the contingent liability qualifies as probable and a reasonable cost can be estimated, then it must also be reported as a liability in the balance sheet. But since this lawsuit is only reasonably possible, not probable, then it doesn't need to be included in the balance sheet.

As a general thumb rule, we can assume that probable means that the chance of losing is more than 50%, while possible means that there is a 50/50 chance.

You might be interested in
Company Z is a U.S. company that is the first in this country to produce a good that is already produced in many foreign countri
lina2011 [118]

Answer:

Infant industry.

Explanation:

In this scenario, Company Z is a U.S. company that is the first in this country to produce a good that is already produced in many foreign countries and sold in the United States. Most likely, the argument it will voice in its attempt to be protected from foreign competition is the infant industry argument.

An infant industry can be defined as an industry that is still in its early stages of development and as such are not capable of competing with foreign companies.

<em>Hence, according to the infant industry theory the argument would be that infant industries should be offered some kind of protection from competitors in other industries either foreign or local until they mature and develop a good and reputable economies of scale. </em>

6 0
3 years ago
Which of these situations does NOT require a food handler to wash their hands? A. After handling garbage or dirty dishes B. Afte
Tamiku [17]
The correcto answer for this question is the letter c
7 0
3 years ago
Read 2 more answers
In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be:
ser-zykov [4K]

In a negotiation, to allow for concessions, the expectations expressed in the seller team's opening position should be higher than its target position

Option B

<u>Explanation: </u>

Negotiation is a political dialogue that addresses a problem in a way acceptable to both sides. That group tries in a discussion to convince the other to adhere to its views. Both parties involved tend not to argue, rather seek to find some kind of agreement by mediation.

Talks require others, so that one side is always in the forefront of the talks. Nevertheless, even when the concession is marginal, the other should surrender.

Negotiation parties can differ. These may include negotiations between purchasers or even between the government of several or more nations, employers and future employees.

6 0
3 years ago
Who is this a random girl from the web or some one else
djverab [1.8K]
Random girl from the web.
4 0
3 years ago
Read 2 more answers
A customer with a moderate income from a secure job is in the 28% tax bracket. She has a small diversified portfolio and has $10
Fofino [41]

Answer:

a or b is the answer I am not sure so I gave two options

7 0
3 years ago
Other questions:
  • When Yahoo! develops new online services, the company develops a version of the service and shows it to customers. It solicits i
    5·1 answer
  • True or False: Entrepreneurs are willing to accept risks for an opportunity to earn a salary by producing a new, innovative prod
    11·1 answer
  • When Americans buy goods produced in Canada, Canadians earn income from American expenditures. Does the value of this Canadian o
    14·1 answer
  • $1,000 of supplies were purchased at the beginning of the month. $300 were used during the month. (The Supplies account was incr
    5·1 answer
  • How is value added different from profit
    11·1 answer
  • Which of the following compensation proposals is most likely to be in the best interest of the company’s shareholders? A base sa
    8·1 answer
  • The aggregate demand curve is downward sloping because production costs decline as real GDP increases. is upward sloping because
    5·1 answer
  • Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match
    10·1 answer
  • Al manages both Brown River Apartments and Orange Acres Condominiums. These complexes are not owned by the same person. In this
    14·1 answer
  • on january 1, 2024, howell enterprises purchases a building for $151,000, paying $41,000 down and borrowing the remaining $110,0
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!