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If a company settles a previously unaccrued outstanding legal case for $90M, how would this be noted in the subsequent events footnote? ** $90M is considered material

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If a company settles a previously unaccrued outstanding legal case for $90M, how would this be noted in the subsequent events footnote?

** $90M is considered material

Answered Same Day Dec 21, 2021

Solution

David answered on Dec 21 2021
127 Votes
Solution:-
In case the company has to represent an un-accrued liability settled for $ 90 Million (which has
een considered as material) in the footnotes the presentation of the same would be as follows:-
Note: - Prior period adjustments
The company has recognized a liability for a legal...
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