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Your client is being sued. You have asked the client’s lawyer about the possibility of losing the lawsuit. The client, meanwhile, has asked you to describe what would happen to his or her financial statements.
Conduct research in FASB to answer your client’s question.
Write a 250-word memo that is brief but fully explores the issue. Include the following in your memo:
• Report requirements for contingencies and describe what would happen to the financial statements if the client loses the lawsuit.
Note: we do not need to write an Introduction or a Conclusion.
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