This document contains two sample policies that provide guidelines and procedures for recognizing and disclosing an organization’s liabilities.
This type of policy provides guidance regarding the recognition and disclosure of contingent liabilities. The guidance assures contingencies are recorded and disclosed accurately, completely, timely and consistently.
The policy covers existing conditions, situations or sets of circumstances involving uncertainty as to possible loss to the company that will ultimately be resolved when some future event(s) occur or fail to occur. It addresses probable losses that can be reasonably estimated.