Homework Answers
Since the outcome is uncertain and amount cannot be determined with certainity, no accounting record shall be made and ABC will just have to put a disclosure of the court case in the notes to the financial statement section.
Add Answer to:
Moani filed a lawsuit against ABC Ltd for compensation of $10 million as a result of...
A customer filed a lawsuit against Delta Ltd in December 2018. The lawsuit was for costs and damages allegedly incurred...
A customer filed a lawsuit against Delta Ltd in December 2018. The lawsuit was for costs and damages allegedly incurred as a result of the failure of one of Delta Ltd's electrical products. The amount claimed was $3 million. Delta Ltd's lawyers have advised that the amount claimed by the customer is extortionate and that Delta has a good chance of winning the case. However, the lawyers have also advised that if Delta Ltd loses the case it is expected...
Aviation Systems is involved in a $10 million lawsuit filed against one of its suppliers, Electronic...
Aviation Systems is involved in a $10 million lawsuit filed against one of its suppliers, Electronic Innovators. The litigation is in final appeal, and legal counsel advises that it is probable that Aviation Systems will win the lawsuit and be awarded somewhere between $6 and $10 million. Which of the following statement is true? A gain and an asset must be recorded for $6 million. O A gain must be recorded for $10 million and an asset must be recorded...
Aviation Systems is involved in a $10 million lawsuit filed against one of its suppliers, Electronic...
Aviation Systems is involved in a $10 million lawsuit filed against one of its suppliers, Electronic Innovators. The litigation is in final appeal, and legal counsel advises that it is probable that Aviation Systems will win the lawsuit and be awarded somewhere between $6 and $10 million. Which of the following statement is true? O A gain and an asset must be recorded for $10 million, O A gain must be recorded for $10 million and an asset must be...
Recognizing the risk of being sued, Modus is considering buying insurance to guard against the financial...
Recognizing the risk of being sued, Modus is considering buying insurance to guard against the financial consequences of a potential lawsuit. The company’s best estimate is that there is a 1.5% chance of a serious failure of one of their test-kits, resulting in a lawsuit, over the next year. Andre Serrano estimates that in the case of such a serious failure a court is almost certain to find in favour of the patient, and—on average—to award the patient damages of...
Recognizing the risk of being sued, Modus is considering buying insurance to guard against the financial...
Recognizing the risk of being sued, Modus is considering buying insurance to guard against the financial consequences of a potential lawsuit. The company’s best estimate is that there is a 1.5% chance of a serious failure of one of their test-kits, resulting in a lawsuit, over the next year. Andre Serrano estimates that in the case of such a serious failure a court is almost certain to find in favour of the patient, and—on average—to award the patient damages of...
Case 2: PQR SAOC is a manufacturer of edible oil. You are an expert who deals...
Case 2: PQR SAOC is a manufacturer of edible oil. You are an expert who deals with the transactions related to provisions, contingent assets, contingent liabilities and intangible assets in the company. For each of the scenario mentioned below provide with an appropriate solution with accounting treatment, calculations and necessary comments: (4 x 2.5 marks each = 10 marks) 1. On 5* December 2019, 50 people were hospitalized after consumption of food cooked in oil manufactured by the company. Legal...
Z Corp. filed a claim for patent infringement against M Corp. in October 2019. In preparing...
Z Corp. filed a claim for patent infringement against M Corp. in October 2019. In preparing its financial statements for the year ending December 31, 2019, M Corp. financial accounting group obtained the following information related to this claim: M Corp’s Risk Management Department believes that M will incur a loss from this lawsuit. They estimate the loss will be in a range from $15 million to $20 million, but cannot give a more precise estimate. The trial will likely...
In order to expand its operations, Gibson Corp. raised $5 million in a public offering of...
In order to expand its operations, Gibson Corp. raised $5 million in a public offering of common stock, and also negotiated a $2 million loan from Citizens National Bank. In connection with this financing, Gibson engaged Horton & Co., CPAs, to audit Gibson’s financial statements. Horton knew that the sole purpose of the audit was so that Gibson would have audited financial statements to provide to Citizens National Bank and the purchasers of the common stock. Although Horton conducted the...
Topic 3: Accounting policies and other disclosures Forever Young Ltd is a company that manufactures and...
Topic 3: Accounting policies and other disclosures Forever Young Ltd is a company that manufactures and supplies beauty products to local and international retailers. As the financial accountant of the company, the following events have been brought to your attention whilst finalizing the financial statements for the reporting period ending 30 June 2019: 1. During September 2018, a client filed a lawsuit against Forever Young Ltd, having suffered severe skin damage after consuming the company’s products. This was reported as...
Question: For the Disney Company, provide a brief detail of the lawsuit. Because the Beef lawsuit...
Question: For the Disney Company, provide a brief detail of the lawsuit. Because the Beef lawsuit is included in the footnote, what does this tell you about the company belief regarding the merit of the lawsuit? Information Needed to Answer: Commitments and Contingencies Commitments The Company has various contractual commitments for broadcast rights for sports, feature films and other programming, totaling approximately $51.0 billion, including approximately $0.4 billion for available programming as of October 1, 2016, and approximately $48.7 billion...
A customer filed a lawsuit against Delta Ltd in December 2018. The lawsuit was for costs and damages allegedly incurred as a result of the failure of one of Delta Ltd's electrical products. The amount claimed was $3 million. Delta Ltd's lawyers have advised that the amount claimed by the customer is extortionate and that Delta has a good chance of winning the case. However, the lawyers have also advised that if Delta Ltd loses the case it is expected...
Aviation Systems is involved in a $10 million lawsuit filed against one of its suppliers, Electronic Innovators. The litigation is in final appeal, and legal counsel advises that it is probable that Aviation Systems will win the lawsuit and be awarded somewhere between $6 and $10 million. Which of the following statement is true? A gain and an asset must be recorded for $6 million. O A gain must be recorded for $10 million and an asset must be recorded...
Aviation Systems is involved in a $10 million lawsuit filed against one of its suppliers, Electronic Innovators. The litigation is in final appeal, and legal counsel advises that it is probable that Aviation Systems will win the lawsuit and be awarded somewhere between $6 and $10 million. Which of the following statement is true? O A gain and an asset must be recorded for $10 million, O A gain must be recorded for $10 million and an asset must be...
Case 2: PQR SAOC is a manufacturer of edible oil. You are an expert who deals with the transactions related to provisions, contingent assets, contingent liabilities and intangible assets in the company. For each of the scenario mentioned below provide with an appropriate solution with accounting treatment, calculations and necessary comments: (4 x 2.5 marks each = 10 marks) 1. On 5* December 2019, 50 people were hospitalized after consumption of food cooked in oil manufactured by the company. Legal...
Most questions answered within 3 hours.
-
The correct answer will be upvoted with positive feedback,
giving me incorrect answers will result in...
asked 10 minutes ago -
Question:
Evaluation: Answer both (a) and (b): (a) Looking at
Table 6.1 in our text, explain...
asked 19 minutes ago -
What is the maximum number of edges that a graph on 7 vertices can
have if...
asked 40 minutes ago -
Question 05
(a) i) What are the three type of general defects in welding?
ii) Explain...
asked 25 minutes ago -
If the wage rate increases from $12 to $16 and, as a result, the
quantity demanded...
asked 31 minutes ago -
the slime layer external to the prokaryotic cell wall is called
the ?
asked 39 minutes ago -
Cheyenne Company must decide whether to make or buy some of its
components. The costs of...
asked 41 minutes ago -
What is the entropy change for mixing 1 liter of a monoatomic
ideal gas (call it...
asked 39 minutes ago -
A company that has 150 employees chooses a committee of 11 to
represent employee retirement issues....
asked 1 hour ago -
the
force between two 2.11 x 10^-4 C charges that are 2.11 meters apart
is ______N?
asked 1 hour ago -
A truck of mass m slows from speed v0 to speed v in a
time t....
asked 1 hour ago -
A 60kg box rests on a floor with a coefficient of kinetic
friction of 0.600 and...
asked 1 hour ago