Can you pleae provide site documentation, thank you Week 7 Discussion \"Contingencies\" Please respond to the following: From the e-Activity, briefly discuss the type of contingencies that Coca Cola is involved in and the accounting treatment of such contingencies. Give your opinion on whether the notes to the financial statements disclose the necessary information on the contingencies for interested parties to make an investing decision. Based on the information disclosed, decide whether you would you invest in Coca Cola. Justify your rationale. Suppose management is involved in a situation where the outcome of the situation is contingent upon certain events to occur; however, management is unsure of the generally accepted accounting principles for reporting contingencies. You are the senior accountant, and management has tasked you with preparing a report on contingencies. Distinguish between a gain contingency and a loss contingency, and highlight the accounting treatment for each type of contingency. Also, recommend two (2) improvements to the reporting requirements on loss contingencies to FASB. Solution A gain contingency is an uncertain situation that will be resolved in the future, possibly resulting in a gain. The accounting standards do not allow the recognition of a gain contingency prior to settlement of the underlying event. Doing so might result in the excessively early recognition of revenue (which violates the conservatism principle). Instead, one must wait for the underlying uncertainty to be settled before a gain can be recognized. If a contingency may result in a gain, it is allowable to disclose the nature of the contingency in the notes accompanying the financial statements. However, the disclosure should not make any potentially misleading statements about the likelihood of realization of the contingent gain. Doing so might lead a reader of the financial statements to conclude that a gain would be realized in the near future. A loss contingency is a charge to expense for what is considered to be a probable future event, such as an adverse outcome of a lawsuit. A loss contingency gives the readers of an organization\'s financial statements early warning of an impending payment related to a likely obligation. If the amount of such a loss cannot be reliably estimated and is not considered probable, an entity may still choose to discuss the item in the footnotes that accompany its financial statements. There are three scenarios for loss contingent liabilities, all involving different accounting treatments. They are:.

1. Can you pleae provide site documentation, thank you
Week 7 Discussion
"Contingencies" Please respond to the following:
From the e-Activity, briefly discuss the type of contingencies that Coca Cola is involved in and
the accounting treatment of such contingencies. Give your opinion on whether the notes to the
financial statements disclose the necessary information on the contingencies for interested parties
to make an investing decision. Based on the information disclosed, decide whether you would
you invest in Coca Cola. Justify your rationale.
Suppose management is involved in a situation where the outcome of the situation is contingent
upon certain events to occur; however, management is unsure of the generally accepted
accounting principles for reporting contingencies. You are the senior accountant, and
management has tasked you with preparing a report on contingencies. Distinguish between a
gain contingency and a loss contingency, and highlight the accounting treatment for each type of
contingency. Also, recommend two (2) improvements to the reporting requirements on loss
contingencies to FASB.
Solution
A gain contingency is an uncertain situation that will be resolved in the future, possibly resulting
in a gain. The accounting standards do not allow the recognition of a gain contingency prior to
settlement of the underlying event. Doing so might result in the excessively early recognition of
revenue (which violates the conservatism principle). Instead, one must wait for the underlying
uncertainty to be settled before a gain can be recognized.
If a contingency may result in a gain, it is allowable to disclose the nature of the contingency in
the notes accompanying the financial statements. However, the disclosure should not make any
potentially misleading statements about the likelihood of realization of the contingent gain.
Doing so might lead a reader of the financial statements to conclude that a gain would be
realized in the near future.
A loss contingency is a charge to expense for what is considered to be a probable future event,
such as an adverse outcome of a lawsuit. A loss contingency gives the readers of an
organization's financial statements early warning of an impending payment related to a likely
obligation.
If the amount of such a loss cannot be reliably estimated and is not considered probable, an entity
may still choose to discuss the item in the footnotes that accompany its financial statements.
There are three scenarios for loss contingent liabilities, all involving different accounting

2. treatments. They are: