As you are analyzing the most recent financial statements of Big Oil (B&O) Company, you question is the company properly recorded an economic event. You know that B&O owns and operates several off-shore oil drilling platforms in the Golf of Mexico. You also recall from news reports that a hurricane severely damaged two of the platforms, leading to a significant loss in revenue while the platforms were inactive. While you see evidence in the financial statements of the damage and repair to the platforms, you cannot find any evidence of the lost revenue in the financial statements. 

Does the loss in revenue from the damaged oil platforms qualify for recognition in the financial statements? Why or why not? please provide in-text citation and relevant references

Answer rating: 100% (QA)

According to Generally Accepted Accounting Principles GAAP only those events or transactions that ca... View the full answer