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Prepare your own accounting research case study

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Reference no: EM132179103

Question: Make up your own accounting research case study. One page. (write some facts and then come up with one question that can be answered through research but do not answer that)


Shorter example is like this: After a wedding in 2013, 10 people died as a result of food poisoning from products sold by Li & Yang Catering Inc. (LYCI). Legal proceedings started, seeking damages from the company. Up to the date of authorization of the financial statements for the year ending December 31, 2013, the company's lawyers advised that it was 40% probable that the company would not be found liable. However, when the company prepared its financial statements for the year ending December 31, 2014, its lawyers advised that, owing to developments in the case, it was 85% probable that the company would be found liable. Assuming the attorneys can arrive at a reasonable estimate of the potential damages, should LYCI recognize a provision in 2013 and in 2014?

Reference no: EM132179103

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