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 stat...

Req 1 A company would prefer not to disclose its contingent liabilities because they cast a shadow o ...

Microsoft Corporation is the defendant in numerous lawsuits claiming unfair trade practices. Microsoft has strong incentives not

Question:

Microsoft is the defendant in numerous lawsuits claiming unfair trade practices. Microsoft has strong incentives not to disclose these ; however, IFRS and ASPE generally require that companies disclose their in the notes to their financial statements.
Requirements
1. Why would a company prefer not to disclose its ?
2. Describe how a bank could be harmed if a company seeking a loan did not disclose its .
3. What is the ethical tightrope that companies must walk when they report their ?
Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...