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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 833 |
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(Sarbanes-Oxley 101, 2005). There are consequences for companies that fail to disclose required items in their financial statement, for example in the supplemental balance sheet. The information in the supplemental balance sheet includes four sections: contingencies, accounting policies, contractual situations and fair values...
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Each of these sections has similar ramifications if not disclosed. Contingencies are “material events that have an uncertain outcome†(Kieso, et al., 2004). Pending litigation, tax operating loss and environmental issues are all examples of contingencies. Failure to disclose contingencies may lead to a material misstatement...
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