Question: Based on how contingent liabilities work in accounting. If the company identifies that a contingent liability is likely to occur, then it is their moral

Based on how contingent liabilities work in accounting.

If the company identifies that a contingent liability is likely to occur, then it is their moral duty to include it as the liability would also be less likely to be out of a client's control. Otherwise, it should not be recorded and/or disclosed.

What are the moral obligations to report a contingent liability? What are the guidelines for reporting such?

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