contestada

ace co. settled litigation on february 1, year 2, for an event that occurred during year 1. an estimated liability was determined as of december 31, year 1. this estimate was significantly less than the final settlement. the transaction is considered to be material. the financial statements for year-end year 1 have not been issued. how should the settlement be reported in ace's year-end year 1 financial statements?

Respuesta :

The settlement be reported in Ace's Year 1 financial statements is in both disclosure and an accrual.

What a Disclosure is?

  • Disclosure is the process of making data or information known to the public.
  • Proper exposure by pots is the act of making its guests, investors, and judges apprehensive of material information.

What happens in Disclosure?

  • Disclosure is the delivery or product of documents by a party to a case to the other parties in the case( rule 210).
  • Disclosure is intended to help surprise at the trial, inform the parties of the issues to be disputed at the trial, and to help the parties to resolve controversies of fact.

Learn more about Disclosure here:

https://brainly.com/question/11487373

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