Generally, loss contingencies that are judged to be remote:
A)should be disclosed in the footnotes.
B)should be recorded in the financial statements.
C)should not be disclosed in the footnotes.
D)should be recorded in the financial statements and the footnotes.

Question

Quizplus · Accepted Answer

Loss contingencies that are judged to be remote should not be disclosed in the footnotes or recorded in the financial statements. This is because remote contingencies are not expected to have a material impact on the financial statements. However, if the company has disclosed the contingency in a prior period and it no longer meets the criteria for disclosure, it should be removed from the footnotes.

Generally, Loss Contingencies That Are Judged to Be Remote