Chapter 10 Section 8: Contingencies Flashcards
1
Q
What do you do with the various degrees of loss contingencies?
A
Probable and estimatable = JE
Possible or unestimatable = disclose
Remote = ignore
2
Q
What value do you use for a JE for probably losses?
A
The best estimate, or the minimum amount in the range, with the range disclosed
3
Q
What do you do with gain contingencies?
A
Do not record JEs. If probable or possible, disclose.
