Tim Hortons Is a Public Company and Prepares Its Financial

question 72

Essay

Tim Hortons is a public company and prepares its financial statements in accordance to IFRS. The company has a contingent liability estimated at $232,000. The likelihood of the obligation occurring is remote or < 5%. What is the appropriate accounting treatment for the company?

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Definitions:

Supermax Prisons

Highly secure and restrictive prisons designed to isolate and manage the most dangerous inmates who pose a severe threat to safety and security.

Maximum Security

Refers to the highest level of security in prisons, where the most dangerous inmates are closely monitored.

Built Since

Refers to structures, institutions, or developments that have been created or established from a certain point in time onwards.

Legalistic Authority

Authority based strictly on legal rules and regulations, often without consideration for individual circumstances or moral implications.