Problem 13-11
Problem 13-11
Question 1
a) As seen in the journal entries above Polska has incurred a loss from the uninsured accident and a liability also. This is due to, firstly a reasonable estimate of the amount has been given and secondly before the financial records were issued the information was already known indicating that the financial obligation had been sustained at the date of the financial statements. In other words, the outstanding injury suits, the happening of the uninsured accidents during the year and the legal counsels’ estimates of possible loss needed acknowledgement of a loss contingency.
Question 2
b) From the entries ...
