Discussion: Current Liabilities
Read the spotlight on Current Liabilities and Contingencies: What About the Environment? and then answer the following questions.
Assume that Exxon accounts for contingencies using IAS 37. Prepare 3 paragraphs (4 sentences or less for each paragraph/question) addressing the following:
Explain why you agree or don’t agree that Exxon’s contingent liability disclosures were adequate.
Explain why you agree or don’t agree that IAS 37 provides sufficient guidance to provide users enough disclosure about environmental liabilities.
How does the concept of “sustainability” relate to the concept of “environmental liabilities”?
Discussion Board Posts
he goal of discussions goal is to engage in a meaningful dialogue with at least one peer to aid you in going beyond superficial knowledge of the topics. You will be expected to post an original post by Tuesday, at 11:59 pm of each week. By Thursday, at 11:59 pm you must respond to at least one peer's initial post. Also by By Thursday, you will also need to check the response you made on Tuesday to see if a dialogue has begun for the initial post of a peer for which you responded. Then, by Saturday at 11:59 pm you must have engaged in a real conversation with someone who responded to your initial post. You are expected to participate in discussions after having completed the assigned readings and cases. Discussion grades are based on completeness, grammar and quality of comments made. Comments that are redundant or non-quality will result in zero points for your grade.
Discussions are due by 11:59 pm on the assigned due date. Late discussions receive zero points. .
00114166 Current liabilities and contingencies discussion
Name Course Instructor Date
Explain why you agree or don’t agree that Exxon’s contingent liability disclosures were adequate.
I agree that Exxon’s contingent liability disclosures were adequate as there is was measurement and recognition of the liabilities where there was an obligation that resulted in payment and this was reliably estimated. A present obligation that cannot be reliably measured or is not probable reflects contingent liability (IAS Plus, 2020). From October 1991 and 10 years later Exxon was to spend more than $2 billion for the oil spill cleanup. IAS 37 was operational from 1 July 1999. The 1991, 1993, 1996, 2007 and 2008 annual report disclosures reported the present obligations resulting from the 1989 oil spill incident. The 2007 and 2008 annual report disclosures on contingent liabilities then indicated the contingent liabilities as part of the probable settlement based on obligations as reflected in the court rulings and settlements
Explain why you agree or don’t agree that IAS 37 provides sufficient guidance to provide users enough disclosure about environmental liabilities.
The Standard identifies provisions as liabilities that are uncertain in timing or amount and there is sufficient guidance on environmental liabilities that are reported in the financial stat...