Liabilities Found In the Financial Statements A paragraph summarizing of the liabilities found in the statements.
A number of companies have pending lawsuits or other contingent liabilities reported in their financial statements.
Search the EDGAR database found at http://www.sec.gov/edgar/searchedgar/companysearch.htmlto find a company’s 10-K that reports a contingent liability. Write a paragraph summarizing one of the liabilities found in the financial. Did the company disclose the liability in the footnotes only, or did it recognize the liability in the statements?
What procedures might the auditors use to search for the contingent liabilities? Financial analysts rely on data to analyze the performance of, and make predictions about, the future direction of a company’s stock price.
