CPA- FAR: How should contingency Gains/Losses be accounted for if they are:
1) Probable
2) Reasonably Possible
3) Remote

Question

How should contingency Gains/Losses be accounted for if they are:
1) Probable
2) Reasonably Possible
3) Remote

LandiniLizard · Accepted Answer

1) Gains = Disclose; Loss = JE and Disclose
2) G/L = Disclose Only
3) G/L = Ignore (Unless guarantee of indebtedness to others, then disclose)

How should contingency Gains/Losses be accounted for if they are: 1) Probable 2) Reasonably Possible 3) Remote