A company has a contingent loss that can be estimated, but the chance of it occurring is remote. What reporting does the FASB require regarding this contingency?
A)It should not be accrued or reported in the notes to the financial statements.
B)It should be accrued and reported on the financial statements and reported in the notes to the financial statements.
C)It should be accrued and reported on the financial statements.
D)It should be reported in the notes to the financial statements.

Question

Quizplus · Accepted Answer

If the chance of a contingent loss occurring is remote, the FASB does not require it to be accrued or disclosed in the financial statements or notes.

A Company Has a Contingent Loss That Can Be Estimated