Other common contingent liabilities are guarantees of the debts of others,potential adverse judgments in litigation,and currently contested tax liabilities or audits. Lenders sometimes request a list of all contingent liabilities when evaluating a borrower’s financial strength. Such contingency is neither recorded on the financial statements nor disclosed to the investors by the management. This shows […]
The principle states that all the accounting methods adopted by a business should be recorded in the financial statements’ footnotes, balance sheet or in any other places in the financial document. Full disclosure principle ensures that accountants include all the necessary information into financial documents. You may follow generally accepted accounting principles or a different […]
