February 18th, 2012 
admin 
Plea_of_insanity Question ? How does this subordinated debt must be provided in the financial statements
The organization has $ 140,000 to the owner at the end of your rental place for failure to pay two months rent in the office several years ago. The organization is registered in the current liability in its consolidated financiers.Après lengthy negotiations, the owner agrees to cancel the debt on the extension of lease for another seven years in office, the following condition. The renewed lease, if the organization fails to extend the rental agreement, you pay $ 140,000 to enter into a lease extension nouveau.Dès U.S. GAAP allows an organization to remove the current $ 140,000 liability in its financial statements? (Taxation, is irrelevant. Organization is exempt from tax. In addition, the real case. No homework or something like that.) Best Answer:
Answer Don
G
I would lose $ 140,000 of liability of books, but a note of the financial statements as contingent liabilities.
Write answer to this question below!
Posted in 
Tags: