A disclosure note is required for all material loss contingencies for which the probability of loss is reasonably possible.

Question

Quizplus · Accepted Answer

According to Generally Accepted Accounting Principles (GAAP), a disclosure note is required for all material loss contingencies for which the probability of loss is reasonably possible. This is to ensure that investors are fully informed of any potential risks or uncertainties that could impact the financial health of the company. Failure to disclose material loss contingencies could result in legal and financial consequences for the company and its executives.

A Disclosure Note Is Required for All Material Loss Contingencies