ACCOUNTING FOR CONTINGENT LIABILITIES

Case study: Sell-soft and contingency liability accounting
Future financial obligations that become certain at a future event are called contingent liabilities while future financial liabilities that remain certain on their occurrence in future are referred to as provisions (Rolfe, 2008). Contingent liability is less certain than a provision in that contingent might or might not happen in future and the level probability may vary while provisions are known with certainty to happen. In the case of sell soft, the ongoing laws suits on….

 

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