Microsoft Corporation is the defendant in numerous lawsuits claiming unfair

Microsoft Corporation is the defendant in numerous lawsuits claiming unfair trade practices. Microsoft has strong incentives not to disclose these contingent liabilities; however, IFRS and ASPE generally require that companies disclose their contingent liabilities in the notes to their financial statements.
Requirements
1. Why would a company prefer not to disclose its contingent liabilities?
2. Describe how a bank could be harmed if a company seeking a loan did not disclose its contingent liabilities.
3. What is the ethical tightrope that companies must walk when they report their contingent liabilities?

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