Contingent Liabilities: Key Examples, Definitions and Accounting Guide
No disclosure or recording is required on the balance sheet under GAAP or IFRS since they do not impact financial statement users’ decision-making process. An instance of this could be a remote possibility of a product malfunction affecting an obsolete product no longer in production. If only one of the conditions is met, the liability … Continue reading Contingent Liabilities: Key Examples, Definitions and Accounting Guide