Business Its Legal Ethical & Global Environment
10th Edition
ISBN: 9781305224414
Author: JENNINGS
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
During the year to 31 December 2019, a customer started legal proceedings against TCI Food company, claiming that one of the food products that it manufactures had caused several members of his family to become seriously ill. The company’s lawyers have advised that this action will probably not succeed. Should the company disclose this in its financial statements according to IAS 37?
After a wedding in 2018, ten people died, possibly as a result of food poisoning from products sold by Ziem Catering Services. Legal proceedings have commenced, seeking damages from Ziem Catering Services but it disputes liability. Up to the date of approval of the financial statements for the year to 31 December 2018, Ziem Catering Services’ lawyers advised that it is probable that it will not be found liable.However, when Ziem Catering Services prepares the financial statements for the year to 31 December 2019, its lawyers advice that, owing to developments in the case, it is probable that it will be found liable.
Required:In accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, what is the required accounting treatment?i. At 31 December 2018?ii. At 31 December 2019?
A council health inspector threatens to close down a restaurant by issuing a fake health violation notice if the owner does not make a financial payment to him. If the restaurant owner does not cooperate, the restaurant cannot be opened for business and the negative publicity will drive customers away. Faced with the potential economic loss, the owner makes the payment.
Knowledge Booster
Similar questions
- Which of the following MOST likely indicates a clear violation of an NFPO’s code of conduct? John Adams, a volunteer for the local pet shelter, also owns a pet store and has offered a discount on pet food to the local shelter. Cecilia Lam used inappropriate language on her Facebook page when referring to the NFPO for which she worked. Mark Adams, an employee for a legal society, used the organization’s computer to research a new job. Hanpreet Kaur, the accountant for a sports rehabilitation society, offered the society’s services to his sister free of charge without her needing to qualify.arrow_forwarde. After a wedding in 2018, ten people died, possibly as a result of food poisoning from products sold by Ziem Catering Services. Legal proceedings have commenced, seeking damages from Ziem Catering Services but it disputes liability. Up to the date of approval of the financial statements for the year to 31 December 2018, Ziem Catering Services’ lawyers advised that it is probable that it will not be found liable. However, when Ziem Catering Services prepares the financial statements for the year to 31 December 2019, its lawyers advice that, owing to developments in the case, it is probable that it will be found liable.Required:In accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets, what is the required accounting treatment?i.At 31 December 2018?ii.At 31 December 2019?arrow_forward. The RIB Act grants the Discipline Committee power to impose penalties on members found guilty of misconduct, which is defined under Section 15(1) of Ontario Regulation 991. Which one (1) of the following acts is NOT defined as "misconduct". Being convicted after October 1, 1981 of a criminal offence or an offence under the Insurance Act. Failure to comply with the RIB Act, Regulations and By-laws. The payment of any referral or finder's fee to an insurance broker registered in the province of Quebec to act as an intermediary for insurance, other than life insurance. The use of any practice or conduct that results in unreasonable delay or resistance to the fair adjustment of claims.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Business Its Legal Ethical & Global EnvironmentAccountingISBN:9781305224414Author:JENNINGSPublisher:Cengage
Business Its Legal Ethical & Global Environment
Accounting
ISBN:9781305224414
Author:JENNINGS
Publisher:Cengage