【導讀】Derivatives,Contingencies,Solutions.atthemarketpriceof$50pershare,foratotalpriceof$5,000.OnJanuary1,2020,youneedtomakea. canbesold.calledaderivative.underlyingasset.windupwith$5,000onJanuary1.orviceversa.future.year.P

　　

【正文】 contracts are as follows: 1941 Accounting for Contingencies ? Contingent losses. Circumstances involving potential losses that will not be resolved until some future event occurs. ? Contingent gains. Circumstances involving potential gains that will not be resolved until some future event occurs. 1942 Accounting for Lawsuits 1. The nature of the lawsuit 2. Progress of the case in court, including progress between date of the financial statements and their issuance date 3. Views of legal counsel as to the probability of loss 4. Prior experience with similar cases 5. Management’s intended response to the lawsuit FASB Statement No. 5 identifies several key factors to consider. These include the following: 1943 ? The SEC staff issued Staff Accounting Bulletin No. 92, which set forth the SEC’s interpretation of GAAP regarding contingent liabilities, with particular applicability to panies with environmental liabilities. ? The AICPA issued SOP 961 outlining key events that can be used to determine whether an environmental liability is probable. Accounting for Environmental Liabilities (continues) 1944 Accounting for Environmental Liabilities ? The FASB, in Statement No. 143, requires that an obligation associated with retiring an asset should be recognized when incurred and be measured using present value techniques. The offsetting debit should be an addition to the cost of the associated asset. 1945 Business Segments Information to be disclosed in the financial statement notes under the provisions of FASB Statement No. 14 included revenues, operating profit, and identifiable assets for each significant industry segment of a pany. 1946 FASB Statement No. 131 additional disclosure requirements: 1. Total segment operating profit or loss 2. Amounts of certain ine statement items such as operating revenues, depreciation, interest revenue, interest expense, tax expense, and significant noncash expenses 3. Total segment assets Business Segments (continues) 1947 4. Total capital expenditures 5. Reconciliation of the sum of segment totals to the pany total for each of the following items: ? Revenues ? Operating profits ? Assets Business Segments (continues) 1948 In addition to these five items, panies must also disclose how operating segments are identified. Revenue test. A segment should be reported if its total revenue is 10% or more of the pany’s total revenue (external and internal). (continues) Business Segments 1949 Profit test. A segment should be reported if the absolute value of its operating profit (or loss) is greater than 10% of the total operating profit for all segments that reported profits Asset test. A segment should be reported if it contains 10% or more of the bined assets of all operating segments. Business Segments 1950 Interim Reports ? Statements showing financial position and operating results for intervals of less than a year are referred to as interim financial statements. ? There are two prominent viewpoints about reporting interim results. ? Each reporting interval is to be recognized as a separate accounting period. ? The interim period is an integral part of the annual period (accepted by the APB in Opinion No. 28).