No Disclosure Is Required Because an EPA Claim Is as Yet

question 77

Essay

No disclosure is required because an EPA claim is as yet unasserted, and an assessment is not probable. Even if an unfavorable outcome is thought to be probable in the event of an assessment and the amount is estimable, disclosure is not required at this time unless an unasserted claim is probable.
2. This is a gain contingency. Gain contingencies are not accrued even if the gain is probable and reasonably estimable. The gain should be recognized only when realized.
If the amount is deemed material, Barone will disclose information in notes to the financial statements and ensure the wording is not misleading as to the eventual outcome.

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Definitions:

Ancestor Classes

Classes in object-oriented programming from which a class inherits properties and methods, often referred to as superclass or base class.

Derived Class

A class in Object-Oriented Programming (OOP) that inherits properties and behaviors from another class, known as the base class or superclass.

Inheritance

A feature of object-oriented programming where a class can inherit properties and methods from another class.

Default Access

A type of access modifier in Java where a member is accessible within its own package and is not available from outside the package if no specific access modifier is specified.