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متابعة

A company is being sued for $100,000. What would be recorded on the balance sheet?

 

 

a. Nothing

 

b. $100,000 Set-aside Cash

 

c. $100,000 Liability

 

d. $100,000 Contingent Liability

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تم إضافة السؤال من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
تاريخ النشر: 2015/06/10
Wasim khan wazir
من قبل Wasim khan wazir , Finance Specialist , Mott Macdonald

In this regard, company need follow IAS37. if it's probable and reliably measured, provision should be recognized. In case obligation is possible, need to disclose contigent liability into notes of account. If occurance is remote do nothing

Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option A is the right answer.

Abdul Majid Khatri
من قبل Abdul Majid Khatri , A Qualified Chartered Accountant , Honeycomb Logistics Pvt. Ltd.

Option (D) $100,000 Contingent Liability........!!!

Tranquilino Jr Rivera
من قبل Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

It depends. If the loss is likely to occur, that is "probable" and the loss can be estimated, then record a contingent liability. If the loss is unlikely to occur, then it should only be disclosed in the notes. If it is remote, then a contingent liability should not be recorded.

Muhammad Ramzan Tufail  ACCA
من قبل Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

A) Nothing...............................

Vijayabharathi Kalyanasundaram (ACMA - INDIA)
من قبل Vijayabharathi Kalyanasundaram (ACMA - INDIA) , Finance Analyst , shell

If the loss is reasonably possible , disclosure is necessary by way of note....and contingent must exist on the balance sheet date.......In this case,we can take it as contingent liability since loss is reasonably possible based on the court judgement..

lakshminarasimham mallareddi
من قبل lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct Answer is d. $100,000 Contingent Liability if company is being sued for 

mehfooz alam khan habib khan
من قبل mehfooz alam khan habib khan , Security Incharge , Landmark Group (Emax)

Option D............. ............m...........

Sheikh Zohaib Rehman Zaibi
من قبل Sheikh Zohaib Rehman Zaibi , Admin and Accounts Officer , NAI ZINDAGI

It would be recorded in contingent liability

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