How Should a Contingent Liability That Has a Likely Chance

question 72

Short Answer

How should a contingent liability that has a likely chance of occurring and can be reasonably estimated be disclosed? $\begin{array}{lll}&\text { Accrual}&\text { Footnote }\\\hline\text { a. } & \text { No } & \text { No } \\\text { b. } & \text { Yes } & \text { No } \\\text { c. } & \text { No } & \text { Yes } \\\text { d. } & \text { Yes } & \text { Yes }\end{array}$

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Definitions:

Manufacture Goods

Products that have been processed or transformed from raw materials into finished goods ready for sale.

MDG Concerns

Pertains to issues or matters that directly impact the progress or achievement of the Millennium Development Goals, which are a set of eight global development targets.

Gender Equality

The state of equal access to resources and opportunities regardless of gender, including economic participation and decision-making.

Investment Opportunities

Options available to individuals or firms to allocate capital with the expectation of generating financial returns.