Assume that Exxon accounts for contingencies using IAS 37. Prepare 3 paragraphs (4 sentences or less for each paragraph/question) addressing the following:

  • Explain why you agree or don’t agree that Exxon’s contingent liability disclosures were adequate.
  • Explain why you agree or don’t agree that IAS 37 provides sufficient guidance to provide users enough disclosure about environmental liabilities.
  • How does the concept of “sustainability” relate to the concept of “environmental liabilities”?