Posted: September 10th, 2021

Assignment: I need help writing a research paper., Liabilities and Contingencies: Can they be estimated?

1. Liabilities and Contingencies: Can they be estimated? Are they probable to occur? What did you learn about estimated liabilities and contingencies from the note disclosures in the SEC filing? How may these items impact profitability and other cost accounting-related topics for your manufacturing company?
1. Liabilities and contingencies:
A contingent liability may be defined as any potential future loss or obligation that may arise from happening of a particular event. On triggering of specific events, the probable loss or obligation will be converted into an actual liability. There are three categories of contingent liabilities specified by GAAP – probable, possible and remote.
Probable contingencies are likely to occur and can reasonably be estimated and are expected more than 50% chances to be realized. These liabilities will be reflected in the balance sheet on the credit side. Possible contingencies are anticipated to achieve less than 50% are disclosed in notes as disclosure requirements.
In HP balance sheet, various lawsuits, claims, investigations, and proceedings arising in the ordinary course of business. HP had recorded the liabilities for contingencies when it believed it is probable that liabilities have been incurred and the amount of loss can be reasonably estimated. As of October 31, 2017, HP, believes that it has recorded all the liabilities that can arise from the pending litigations and the amount of loss will not be more than liability recognized. HP has disclosed all instances in notes to the financial statement as contingencies.
We learned from SEC form 10-K filings that accounting policy for contingent liabilities should be shown in financial statements and impact of loss to be occurred due to probable liabilities should be recorded in financial statements and all disclosures should be made related to contingent events and possible loss obligations in notes to financial statements.
2. Does management disclose any information about Corporate Social Responsibility (CSR) and Sustainability policies? How would this emerging framework impact on cost and profitability for your corporation? (NOTE: Some large multinational corporations maintain a separate CSR and/or Sustainability website.)
2. Corporate Social Responsibility and Sustainability:
The company has mentioned regarding sustainability in its annual report filing with SEC. The company has covered three issues regarding sustainability, i.e., environment, society, and integrity. The company has focused on reinventing its business models and operations so that the company can encourage the low carbon and circular economy and greater efficiency, resources productivity and waste reduction can be achieved. The company has made agreements with suppliers to ensure that workers should receive fair treatment, safe working conditions, and freely chosen employment. The company is also maintaining integrity in all of its processes, structures, and behaviors. The company’s long-term sustainability goals are to take care of climate changes by use of 100% renewable energy in global operations, to take care of natural resources and to take care of society by providing the adequate resources to the community and to establish integrity by maintaining more significant than 99% completion rate of standards of business conduct training among HP employees. The company had issued press releases and filed with SEC the events and actions taken by the company related to Corporate Social responsibility, and its CSR policies are available on its website.
The sustainability programs help the company to maintain good ethics and excellent reputation in the society, and it also impacts company’s profitability as the company’s reputation and faith of people in the company will increase and accordingly it is expected to grow sale volume and brand image of the company.
References:
HP annual report and form 2017-K retrieved from http://h30261.www3.hp.com/~/media/Files/H/HP-IR/documents/reports/2018: 2024 – Write My Essay For Me | Essay Writing Service For Your Papers Online/2017-10-k.pdf
More information about HP can be retrieved from https://www.morningstar.com/stocks/xnys/hpq/quote.html

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