Loblaw Companies Limited (which owns Shoppers Drug Mart) reported the following information about contingencies in the notes
Question:
Loblaw Companies Limited (which owns Shoppers Drug Mart) reported the following information about contingencies in the notes to its December 30, 2017, financial statements:
Instructions
Why would Loblaw disclose information about these legal disputes, including the amount of the potential loss, in the notes to the financial statements instead of accruing an amount for these as liabilities in its accounting records?
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...
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Loblaw does not accrue legal proceedings as they are not expected to have a material impact ...View the full answer
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Related Book For 
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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