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Financial Accounting Name of the University Author

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The liabilities that can be termed as contingent liabilities needs to be shown in the financial statements of the company and the amount that has been estimated within the financial statement can be taken up as an internal basis, which is expected to be recognized under the heading of the financial statement and the amount that has been estimated by the company so that it can be recorded in the annual sheet. The liabilities that can be termed as contingent liabilities needs to be shown in the financial statements of the company and the amount that

Financial Accounting Name of the University Author

   Added on 2020-05-16

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Running head: FINANCIAL ACCOUNTINGFinancial AccountingName of the StudentName of the UniversityAuthor Note
Financial Accounting Name of the University Author_1
1FINANCIAL ACCOUNTING718 Geelong StreetMelbourne, VIC 3000Telephone 62 8 1215 7080www.magentaandassociates.com.au16 January 2018Mr. Christopher SampsonThe managing DirectorBeachlife Ltd.Level 7, 927 William StreetBrisbane QLD 4000Dear Christopher,We are indeed glad in hearing from you and we would like to thank you regarding the e-mail thatyou have sent to us. We are happy that you have reached to us and we are of the view that wewill provide the best solutions that are available so that it can help you in taking the decisions ina better manner. Like every time, we will always try to provide you with the best solutions
Financial Accounting Name of the University Author_2
2FINANCIAL ACCOUNTINGregarding the problems that are present in accounting along with the issues that you havedescribed within the contents of your mail and the recommendations that will be provided to youwill be in accordance with the Corporation Act 2001, AASB and its interpretations will beaccording to the issues of accounting that are presented by IFRS. You must be aware of the fact that contingent liabilities are the ones that may have potentiallosses that can take place in the future may be due to the non-occurrence or the occurrence of aspecific event or due to the result of a specific outcome as well. Many examples can be citedwith respect to contingent liabilities such as the inquiries regarding some organizational failure,which is still pending, claims that legal in nature and the warranties that are present in eachproducts that are purchased by the customers1. The liabilities that can be termed as contingentneeds to be shown in the financial statements of the company and the amount that has beenestimated by the company so that it can be recorded in the annual sheet. This estimated amountcan help the company to prevent the situation that may arise for them in the near future, as acertain amount has been kept separate by them. According to AASB 137, Para 123, theseliabilities can be recognized along with the primary responsibility and the probable causes for theoutflow of the resources so that the economy of the company can be benefitted and can be settledunder these responsibilities. According to Para 29, it can be seen that jointly and severally theliability of the company is that they have to treat these responsibilities under the broad headingof contingent liability. These liabilities have to be developed primarily, as it cannot be expectedby the company to happen certainly during the financial year. Therefore, the analysis of theseliabilities has to be continuous so that the outflow of the resource can be determined, which will1Gamper, Catherine, et al. "Managing disaster-related contingent liabilities." (2017).
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