SSAP 5: Liabilities, Contingencies, Imparment of Assets Flashcards Preview

Exam 6 > SSAP 5: Liabilities, Contingencies, Imparment of Assets > Flashcards

Flashcards in SSAP 5: Liabilities, Contingencies, Imparment of Assets Deck (5)
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1

Three essential components of liabilities

1) Present responsibility to transfer assets at specified date based on occurrence of a specified event
2) Entity has little/no discretion to avoid responsibility
3) Obliging event has already occurred

2

Loss contingency

Existing condition involving uncertainty as to possible loss to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur

3

To charge loss contingency to operations, two conditions

1) Information prior to issuance of statements indicate impairment incurred as of date of statements
2) Amount can be reasonably estimated
If judgment has been rendered, they have been met

4

Joint and Several Liabilities

Reported as sum of amount insurer agreed to pay based on agreements with co-obligors and additional amount expected to pay on behalf of co-obligors

5

Disclosures for Joint and Several Liabilities

Nature of agreement
Total outstanding
Carrying amount of liability