Writting assignment Example | Topics and Well Written Essays - 500 words

Writting - Assignment Exampleovide for whole know subsequent events provided the availability of additional evidence in their financial statements considering the availability of this information during the date of the sleep sheet or the development of the financial statements.In cases that a probability exist weighing on which a liability has been incurred provides for the reasonable estimation of the liability. 25-8 provides for the creation of the recognition of a loss contingency one time the range in which the loss falls is probable for estimation (Accounting Standards Codification, n.d). In the same context, the retirement of an plus proves possible once the uncertainties provided become certain, and the alliance comprehends the effect caused in totality.During the development of the financial statements of December 31, 2007, the club needed to provide for the uncertainty in its records and based on the estimate developed, it proved necessary to allow in the rough estim ate of $17million in the financials as liability. During the year 2009, the record of the liability stated as $17 million needed amending since the ruling had been made on the case providing for $18 million despite the collecting holding.In 2010, W filed for appeal against the ruling of the court of appeal on the matter. This leaves uncertainty still skirt the matter and hence the need to continue holding the liability stated in the books. According to the ASC 410-30 transaction with asset retirement, it is only recognized once fully ascertained which ascertainment occurred in 2011 after W wooly-minded the appeal. It is, therefore, prudent for the effect of the appeal to occur in 2011 in the financials of M.The company needs to have all the liabilities recognized the right and recorded in the books of accounts based on the Accounting Standards provided. These all provide for the company to have its books and reports run in accordance with the accounting principles providing a tru e and fair view in the companys