Your company was recently served with a lawsuit. The outcome of the litigation will not be determined for several months, but it could result in a materially large settlement to be paid by your corporation.
According to GAAP, what action should you take?
SELECT ONLY ONE
Take no action, because it may be dismissed
Provide a disclosure on financial statements regarding the pending litigation
Wait for the outcome of the lawsuit to address stakeholders
Ensure information regarding the lawsuit is not revealed
Provide a statement to employees and stockholders
Provide a disclosure on financial statements regarding the pending litigation
As per Prudence (or conservatism) concept, the organisation should anticipate future loss but not gains.
So the company should recognize this coming liability in books on accounts. This liability must be shown as a footnote below the balance sheet of a company.
Your company was recently served with a lawsuit. The outcome of the litigation will not be determined for several months, but it could result in a materially large settlement to be paid by your corporation.
1. Analyze the major challanges USB faced in the last 5 years, in your opinion, what were the crucial factors in the banks downturn? 2. what are the main triggers to change the banks approach to communication and what is different today regarding the dealings and relationship to its share-and stakeholders? 3. How would you evaluate the constant replacement of the banks chairman and CEO? 4. in view of the future strategy of USB, what are your suggestions in order...
1. Analyze the major challanges USB faced in the last 5 years, in your opinion, what were the crucial factors in the banks downturn? 2. what are the main triggers to change the banks approach to communication and what is different today regarding the dealings and relationship to its share-and stakeholders? 3. How would you evaluate the constant replacement of the banks chairman and CEO? 4. in view of the future strategy of USB, what are your suggestions in order...