Information regarding material events and uncertainties is most likely found in:
A)Management Discussion & Analysis.
B)Supplementary schedules.
C)Financial statement footnotes.
Answer: A
If you look at contigent liabilties should’nt the answer be c
Material (company-wide) Events are reported in the MD&A, and the footnotes generally contain assumptions relating to calculations of specific values in the financial statements. For example the footnotes would contain the discount rate used to arrive at a certain value or the specifics behind their depreciation assumptions, and the MD&A would talk about how large events are affecting the company as a whole like mergers/acquisitions or developments in the economy.
Contingent liabilities are only one type of uncertainty.
Information about material events – labor strikes, new patent awards, raw material shortages, new contracts, and so on – and uncertainties – future inflation, changing demographics, potential new competitors, and so on – are all contained in MD&A.
thankyou JamesPage and S2000magician
My pleasure.