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Question
On February 19, 2014, Pumpkin settled a lawsuit out of court that had originated in 2000 and is currently listed as a contingent liability.
Possible Actions:
a. Adjust the December 31, 2013 financial statements.
b. Disclose the information in a footnote in the December 31, 2013 financial statements.
c. Request the entity revise and reissue the December 31, 2013 financial statements. The revision should involve an adjustment to the December 31, 2013 financial statements.
d. Request the entity revise and reissue the December 31, 2013 financial statements. The revision should involve the addition of a footnote, but no adjustment, to the December 31, 2013 financial statements.
e. No action is required.
Answer
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