Contingencies

profilecheyl.1

 

  • From the e-Activity, briefly discuss the type of contingencies that Coca Cola is involved in and the accounting treatment of such contingencies. Give your opinion on whether the notes to the financial statements disclose the necessary information on the contingencies for interested parties to make an investing decision. Based on the information disclosed, decide whether you would you invest in Coca Cola. Justify your rationale.

  • Suppose management is involved in a situation where the outcome of the situation is contingent upon certain events to occur; however, management is unsure of the generally accepted accounting principles for reporting contingencies. You are the senior accountant, and management has tasked you with preparing a report on contingencies. Distinguish between a gain contingency and a loss contingency, and highlight the accounting treatment for each type of contingency. Also, recommend two (2) improvements to the reporting requirements on loss contingencies to FASB.

 

    • 6 years ago
    • 5
    Answer(2)

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      contingencies.docx

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      contingencies.doc
    Bids(1)