If the Likelihood of a Future Event Is Probable and the Amounts

question 77

Essay

If the likelihood of a future event is probable and the amounts of the expense cannot be estimated,how should the company report the contingency?

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Definitions:

Legal Expectations

The requirements or standards that the law imposes on individuals, organizations, and actions.

Economic, Legal

Referring to the financial and regulatory context within which organizations operate, affecting their strategies and operations.

Social Responsibility

The obligation of a business to contribute to society in a beneficial manner, beyond its own interests and legal requirements.

Business Profits

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs associated with sustaining the business operations.