Why Are Gain Contingencies Typically Omitted from Financial Statement Disclosure

question 10

Essay

Why are gain contingencies typically omitted from financial statement disclosure?

---

Definitions:

Deferral

A financial term referring to the postponement of the recognition of certain revenues or expenses to a later accounting period.

Journal Entries

Records of financial transactions in the accounting system that are used to transfer amounts from one account to another.

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.