“Financial Accounting II (MGT401)”
This is to inform that your 3rd Graded Discussion Board (GDB) will be opened according to the following schedule
Opening Date and Time
22nd June, 2011 At 12:01 A.M. (Mid-Night)
Closing Date and Time
24th June, 2011 At 11:59 P.M. (Mid-Night)
Topic/Area for Discussionn
“Provisions, Contingent Assets & Contingent Liabilities”
Note: The discussion question will be from the area/topic mentioned above. So start learning about the topic now.
Guidelines for Preparation:
Please Discuss here about this GDB.Thanks
Abacus Shipment is a cargo company which is engaged in transportation of dry bulk and liquid cargoes globally. The management office of the company is located in Lahore and it is listed on the Lahore Stock Exchange since 1990.
In year 2010, Abacus lost an entire shipload of cargo worth Rs. 100 million on a voyage to Canada. This seems to be a big loss for the company but a fortunate thing that it was insured through an insurance policy from PACCS insurance company. According to the report of the surveyor, the amount is claimable with subjected to deductible clause (10% of the claim) in the insurance policy. Before end of year, Abacus received a letter about acceptance of claim covering 90% of total insurance policy with intimating that cheque is in the mail (means the cheque is issued but it is on its way to you by mail).
ABC freight forwarding company which handed over the shipment to Abacus filed a lawsuit of Rs. 100 million against it by claiming the lost of shipment with additional lawsuit of Rs. 4 million resulting from the delay. The “Appellate Tribunal” of legal counsel of shipping companies declared, “It is probable that Abacus Shipment would have to pay Rs. 100 million but it is also a remote possibility that it would have to pay further Rs. 4 million which is claimed by the ABC freight forwarding company as this loss is specifically excluded from the freight forwarding contract.”
You are required to identify:
Be specific and provide only the amounts. Detailed information and definitions are not required.
Read the following instructions before giving your comments on GDB:
You are required to identify:
104 Million Rs. 1st Ans
90 Million Rs. 2nd Ans
plz if any guise make better GDB plz post here
A contingent asset is a possible asset that arises from past events and
whose existence will be confirmed only by the occurrence or nonoccurrence
of one or more uncertain future events not wholly within
the control of the entity.
A contingent liability is:
(a) A possible obligation that arises from past events and whose
existence will be confirmed only by the occurrence or nonoccurrence
of one or more uncertain future events not wholly
within the control of the entity; or
(b) A present obligation that arises from past events but is not
(i) It is not probable that an outflow of resources embodying
economic benefits or service potential will be required to
settle the obligation; or
30 and 31 lectures gdb
contingent liability ans (1) = 104 million and
(2) answer contingent asset = 90 million
i attach here software for the desk top improvements of features