List and briefly describe the three categories of likelihood that a future event(s) will confirm the incurrence of the liability for a loss contingency.

Q: What disclosure is made if a loss contingency is reasonably possible?

A: Contingent Liability: Contingent liability is one form of liability that arises based on a…

Q: Differentiate between “loss carryback” and “loss carryforward.”Which can be accounted for with the…

A:

Q: Outline the measures used to describe possible loss accurately?

A: The success of a business depends on how accurately they predict future profit or loss arriving…

Q: What are the measures used to describe possible loss accurately?

A: Furthermore, you have the option of paying for your item in equal monthly instalments, guaranteeing…

Q: ne purpose of casualty policy’s condition section is to list the property that is to be covered…

A: Casualty policies are taken to prevent the the company from liabilities arising out of damage or…

Q: How one can identify the respective Loss Exposures in Risk

A: The degree of uncertainty and/or potential financial loss connected with an investment choice is…

Q: Which of the following statements about contingent liabilities is incorrect? Group of answer choices…

A: A contingent liability is a potential liability that may arise in the future, such as unresolved…

Q: ente the liability sec

A: Here Montano Inc. issued bonds at 9% when the market interest rate was 7%.  Due…

Q: What disclosures are required for remote likelihood of losses?

A: Likelihood of losses means chance of occuring loss in some future events of the business. Likelihood…

Q: 1. Define and briefly discuss a loss contingency.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Find the FASB ASC reference that explains how to measure an asset's impairment loss.

A: ASC- 360 provides guidance on accounting for the impairment or disposal of long-lived assets. The…

Q: In order to have an insurable risk, all of the following must be present except? a. The loss must be…

A: Introduction: Risk can be characterised in terms of the uncertainty of future consequences resulting…

Q: Define the term Loss Contingencies.

A: A loss contingency is incurred by the business based on the result of a future event, such as…

Q: Define Loss contingency.

A: A loss contingency gives the reader of the financial statements early warning of an impending…

Q: The potential loss because of damage to the insured equipment is a function of the value of the…

A: Potential Loss means the loss suffered due to damages that are accidental in nature like earthquake,…

Q: A present liability of an uncertain amount that can be measured reliably using substantial degree of…

A: Liability: It can be defined as the amount owed by the business from the creditors.

Q: Any anticipated loss should be recognized * A.on a percentage basis during the contract period B.…

A: The amount of anticipated loss is calculated regardless of: (a) whether or not work on the contract…

Q: Explain the accounting for loss carrybacks and loss carryforwards.

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Which among the following advocates for accounting all the prospective losses but leave aside all…

A: Solution: Conservatism convention  advocates for accounting all the prospective losses but leave…

Q: Discuss the rules for related party loss limitations.

A: The IRS has define rule regarding the transactions with the related parties and the treatment of…

Q: Which of the following statements is correct about perils in property insurance policies?

A: Insurance is a contract by which the insured party is protected against losses by the Insurer in…

Q: Discuss the risk of material misstatement inthe acquisition and expenditure cycle.

A: Material Misstatement refers to the misleading information in the statement of affairs of the…

Q: A provision is an existing liability of uncertain timing and uncertain amount True False

A: Introduction:- Provisions express funds put separately by a company to cover anticipated losses in…

Q: difference between expected results and actual experience results to a remeasurement of the net…

A: The answer is stated below:

Q: Is the nature of the gainor loss considered ordinary or long-term?

A: Ordinary gain or loss means any income which doesn't result as Capital gain or loss. Capital Gain or…

Q: What are the benefits of adopting a Condition Base Monitoring (PredictiveMaintenance) in the…

A: A condition monitoring system is a critical component of AM and reliability. CMS scope typically…

Q: . Under IFRS, which of the following is used to measure a liability, if a range of estimates is…

A: If a range of estimates are predicted in measurement of liability and no amount in the range is more…

Q: Which of the following is NOT a valid type of compensation for breach of contract? Select one: a.…

A: A contract is an agreement between two or more parties in which one party is bound to perform or not…

Q: How do U.S. GAAP and IFRS differ in their treatment of a range of equally likely losses?

A: Loss contingency: Loss contingency is a contingency where the existing situations or circumstances…

Q: identify the causes of loss that are covered under the broad form that are not covered. under the…

A: Loss is a situation in which a company is not able to meet its financial obligations or payments or…

Q: Explain the accounting for loss carrybacks.

A: Loss carryback is an accounting situation where the net operating loss of current year can be set…

Q: Define a loss contingency. Provide three examples

A: Loss Contingency:   It is a form of contingency where an existing situation or circumstance where…

Q: Describe a “loss carryforward.” Discuss the uncertainty when it arises.

A:

Q: A provision of % should be made on loss assets

A: A loss asset is an asset that remains as a non-performing asset(NPA) for more than 36 months.

Q: Define this following terms: Environmental Risks, liability risks, insurable risks, self insurance

A: Self-insurance: The act of setting aside or creating funds to meet unexpected incomes and overcome…

Q: Define Impairment Losses.

A: Impairment loss: An impairment loss is an expense reported on the income statement, it is the…

Q: What disclosure is required for a probable loss contingency?

A: Contingent liability: This is an uncertain obligation which might be incurred on a future date as a…

Q: Explain the accounting for loss carryforwards.

A: The Accounting For Loss Carryforwards will be explained:

Q: .    In determining the amount of a provision, a company using IFRS should generally measure: a.…

A: An economic obligation created and maintained to cover the future liability is termed as provisions.…

Q: various time related aspects of consequential losses.

A: Damage to business property or equipment causes a consequential loss, which is an indirect negative…

Q: Under what circumstances should a loss contingency be accrued?

A: Loss contingency: Loss contingency is contingency where existing situation or circumstances where…

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.