At December 31, the end of the reporting period, the analysis of a loss contingency indicates that

Question:

At December 31, the end of the reporting period, the analysis of a loss contingency indicates that an obligation is only reasonably possible, though its dollar amount is readily estimable. During February, before the are issued, new information indicates the loss is probable. What accounting treatment is warranted?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...