contestada

bell international estimates that a $10 million loss will occur if a foreign government expropriates some company property. expropriation is considered reasonably possible. how should bell report the loss contingency?

Respuesta :

The correct options are

  • The contingency is not accrued.
  • This is a loss contingency.
  • The contingency can be reasonably estimated.
  • A disclosure note should describe the contingency.

Since this loss resulted via expropriation, it serves as an illustration of loss contingency. This is a contingency that can be rationally estimated since we are provided with a specific amount (estimation of loss). Given the likelihood that the loss may really materialize, it is crucial to provide a disclosure statement that fully outlines the actual contingency (giving it a basis). A contingency plan, sometimes known as Plan B informally, is a strategy created to deal with a situation that wasn't anticipated in the original plan. It is frequently employed in risk management for a rare risk that, albeit uncommon, might have disastrous results.

To know more about contingency refer to https://brainly.com/question/14545598

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