Strawberry's use of hydraulic compressor in several of its manufactured appliance. If the suit goes against the company, the loss may be as much as P10M. However the lawyers believe that the loss of this suit is only possible. The company did not in any way disclose this pending litigation in its financial statements. What amount of lawsuit liability should be reported as a provision on Strawberry Co.'s statement of financial position at December 31,2021?
Strawberry's use of hydraulic compressor in several of its manufactured appliance. If the suit goes against the company, the loss may be as much as P10M. However the lawyers believe that the loss of this suit is only possible. The company did not in any way disclose this pending litigation in its financial statements. What amount of lawsuit liability should be reported as a provision on Strawberry Co.'s statement of financial position at December 31,2021?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 1RP
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