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Background Note
| HBS Case Collection
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2001
(Revised from original 2000 version)
Liability Reporting
by
Paul M. Healy and Preeti Choudhary
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Abstract
By examining key criteria for recognizing a liability, this case explores liability recognition in straightforward situations and then examines the most difficult reporting issues in recording liabilities. These often arise when: 1) uncertainty arises about whether an obligation has been incurred; or 2) measuring the value of the obligation is difficult.
Keywords: Financial Reporting;
Legal Liability;
Valuation;
Problems and Challenges;
Accounting Industry;
Citation:
Healy, Paul M., and Preeti Choudhary. "Liability Reporting." Harvard Business School Background Note 101-016, November 2001. (Revised from original August 2000 version.)