Reporting Loss Of Contingency

Write a few sentences about the following attitudes , indicating whether the particular(a) is a passing game incident that should be come to or disclosed in the financial direction of Azteca nimbus passages . If the situation is non a press release incident , explain how (if at completely ) it should be reported in the confederation s financial statement (Assume that all dollar amounts are materialAztec considers that 700 ,000 of its accounts receivable give parent to be uncollectableThis case describes a expiration contingency , as the loss is probable and the amount merchant institutionalize very strong be estimated , i .e . Aztec mountain estimate the uncollectible accounts receivableThe comp either is in poor health and has antecedently suffered two heart attacksThis scenario does not describe a loss conti ngency . hither , the general health of the company is organism referred . This is not something that sewer be measured and estimated with the help of a number , thence , we will not record it as a diary entry , rather we ll disclose it in the notes financial statementAs with any airlines , Azteca faces the risk that a future plane disassemble could causal agency considerable lossThis case describes the guess of a loss contingency . As with most airlines , the luck of a plane split is very small , i .e .

it is unlikely to happen , but , incase of an airplane crash the amount lost can be reasonably estimated . and then , this case can be booked by a journal entry and as well mention ed in the footnotesAzteca is existence sued! for 10 million for failing to adequately provide for passenger whose reservations where canceled as a result of the airline overbooking certain flights . This eccentric will not be contumacious for a year or moreThis case also depicts the situation of a loss contingency . In this case the loss is probable , i .e . it is likely to occur , and the amount can be estimated , i .e 10 million , it should be recorded in the accountsBIBLIOGRAPHYKieso , Kimmel Weygandt . method of accounting Principles . 7 . Wiley , 2005...If you want to get a full essay, society it on our website: OrderEssay.net

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