Contingencies

Question 1

Examples of Contingent Liabilities

Answer 1

obligations related to product warranties and pending or threatened litigation

Question 2

Remote Contingencies

Answer 2

normally do not require disclosure.

Question 3

Disclosure of Remote Contingencies: Exceptions

Answer 3

guarantees of indebtedness of others, in which case disclosure, but not accrual, is required.

Question 4

Gain Contingencies

Answer 4

should be disclosed but not recognized as income.