In 2003, a personal injury lawsuit was brought against Halsey Co. Based on counsel ' s estimate, Halsey reported a $ 50,000 liability in its December 31, 2003, balance sheet. In November 2004, Halsey received a favorable judgment, requiring the plaintiff to reimburse Halsey for expenses of $ 30,000. The plaintiff has appealed the decision, and Halsey ' s counsel is unable to predict the outcome of the appeal. In its December 31, 2004, balance sheet, Halsey should report what amounts of asset and liability related to these legal actions?
Question 9
Which of the following is not a contingent liability under international accounting standards?
Question 10
Based on preliminary discussions with a foreign customer, Alcoco, a U. S. entity, budgeted a significant sale to the foreign entity denominated in its foreign currency expected in June 2009. To hedge the risk of an adverse exchange rate change on the dollar value of the expected sale, on January 2, 2009, Alcoco entered into a forward exchange contract to sell an amount of the foreign currency equal to the expected sale. On March 31, 2009, the value of the expected sale amount in dollars had decreased by $ 3,800. The fair value of the forward contract at that date had increased by $ 4,000. Which one of the following is the amount that should be recognized in other comprehensive income for the forward contract only( the hedging instrument) in Alcoco ' s quarterly financial statements as of March 31?