Discussion response(g) | Accounting homework help

 Please respond to the person Discussion below. 150 words 1 reference Apa format

Board of Directors,

I understand that we had a recent incident where our surgeon accidently left behind a tool of his in our patient’s body during an operation. I am here today to explain what impact this will have on our financial statement. So there are essentially two options we have, either we must accrue for this possible expense as a liability on our financials, or we could simply create a disclosure footnote for the time being (the better suited option). I will now explain the three factors that will help us decide how we must account for this. First, if this incident happened before the financial statements date (during the current year fiscal reporting period), then that is one condition that must be met for the event to be accrued. The second is if this incident and the contingent loss and expenses can be reasonably estimated, and the third is how probable it is that the contingency will come to fruition and be a true realizable expense. If all these are satisfied, we must accrue for the liability based off the nature of the expense. If we have insurance for these types of matters, we can present it as an insurance type expense. If the patient and his family did not express they would be filing a lawsuit, we would not have to make a disclosure if those three accrual based criteria were not met, but since it seems probable that they would make such a claim eventually, to be safe and not misleading, we must at least make a disclosure on our financials. In that case, we must explain the nature of the contingency and attempt to provide an estimate or provide a number range of where the damage figures would lie, and perhaps we must contact our actuary for these estimates and ranges.

Best,

Romeo 

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

STAY HOME, SAVE LIVES. Order your essay today and save 20% with the discount code ATOM