A client is involved in several different law suits that are all pending at the end of its fiscal year.The controller wants to know if the cases must be accrued in the accounts, disclosed in the footnotes, or neither of these.
Required:
Write an explanation of the criteria used to determine whether an accrual or a disclosure is required for loss and gain contingencies.

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The Answer of A client is involved in several different law suits that are all pending at the end of its fiscal year.The controller wants to know if the cases must be accrued in the accounts, disclosed in the footnotes, or neither of these.
Required:
Write an explanation of the criteria used to determine whether an accrual or a disclosure is required for loss and gain contingencies.

A Client Is Involved in Several Different Law Suits That