Contingent liabilities are possible future liabilities that will only become certain on the occurrence of some future events. A contingent liability is less certain than a provision‚ the latter is expected to recognize; however‚ a contingent liability might occur. An entity shall not recognize a contingent liability; nevertheless‚ the company should disclose it‚ as required by paragraph 86‚ unless the possibility of an outflow of resources embodying economic benefits is remote. Where an entity
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Contingent Liability 1. Analyze why a company would prefer not to disclose its contingent liabilities. In order to understand why a company would or would not disclose his contingent liabilities it is important to know exactly what a contingent liability is. As I have learned throughout all of my accounting studies a liability is simply an obligation or debt that a business owes to an individual or an organization. Now there are many liabilities that include services‚ payroll‚ notes‚ and
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financial accounting standards statement sets up the foundation for reporting and accounting for loss contingencies. A contingent liability is a potential liability that might‚ or might not happen in the future. For example this could be a lawsuit‚ a product warranty‚ a possible tax assessment‚ a government investigation‚ or even an environmental contamination. A contingent liability and the associated loss are recorded as a journal entry only if the contingency meets these two criteria; A.) the contingency
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Summary of FRS 37: Provisions‚ Contingent Liabilities and Contingent Assets The Standard This standard distinguishes between provisions and contingent liabilities. A provision is included in the statement of financial position at the best estimate of the expenditure required to settle the obligation at the end of the reporting period. A contingent liability is not recognised in the statement of financial position. However‚ unless the possibility of an outflow of economic resources is
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Occupiers Liability for Dangerous Premises Occupiers’ liability is a field of tort law‚ codified in statute‚ which concerns the duty of care that those who occupy (through ownership or lease) real property owe to people who visit or trespass. It deals with liability that may arise from accidents caused by the defective or dangerous condition of the premises. By the expression “Premises” in the context of this topic is meant‚ not only‚ land and buildings but also vehicles‚ railway carriages‚ scaffolding
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Morning Session F. Tort Liability of Healthcare Institutions and Managed Care -Liability for Employees and Non-Employees -Vicarious Liability (pages 418-431): -Agency Law and the Test of “Control”: A. Defining “Employee” in the Hospital Setting -Hospital vicariously liable for acts of employees such as nurses‚ technicians‚ clerks‚ custodians‚ cooks‚ etc. -However‚ physicians are often independent contractors using hospital facilities via staff privileges. So‚ liability of hospitals for physician
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Tort Liability and Contract Liability A tort is a legal term for "a wrong." The "tort law" is composed of state statutes and court decisions that gives one the right to sue someone who causes harm to them‚ whether it’s a drunk driver‚ a corporation that manufactures a defective product‚ a credit card company that overcharges you‚ or a government bureaucrat that breaks the law or a school official such as a teacher or principal. The law of the state in which the school is located determines a school’s
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ASSETS & LIABILITIES Asset is an item of value owned by the company. Assets can be tangible i.e. those which have some physical existence or can be intangible i.e. which do not exist in physical form but can be held in the form of contracts or rights. Assets are usually grouped in order of liquidity (ease of conversion to cash) on the balance sheet. Cash is therefore the most liquid of all assets. Assets can be classified as: 1.) Current Assets – Those assets that are expected to be converted to
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The European Accounting Review 2000‚ 9:3‚ 371 385 Auditor liability rules under imperfect information and costly litigation: the welfare-increasing eŒ of liability ect insurance Ralf Ewert‚ Eberhard Feess and Martin Nell University of Frankfurt‚ Frankfurt am Main ABSTRACT This paper examines auditor liability rules under imperfect information‚ costly litigation and risk-averse auditors. A negligence rule fails in such a setting‚ because in equilibrium auditors will deviate with positive probability
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Running Head: Strict Liability Torts Strict Liability Torts (Product Liability) Adil Elatillah LEG 300 Professor: Queen Meheux Spring 2012 Strayer University Strict Liability exists in the criminal context as well as civil‚ it is a legal responsibility for any damages and losses caused by a person or organization due to the act which is defined a fault in the criminal law term. Strict Liability‚ especially product liability is well known in tort law‚ of course criminal law and the
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