Accounting for a Loss Contingency for a Verdict Overturned on Appeal Essay

M International (M) and W Inc. (W, a competitor of M) have been engaged in long- standing litigation over a specific patent infringement matter. Below is a summary timeline of specific events that have taken place related to this matterIn May 2007, W filed a claim against M for patent infringement.For the year ended December 31, 2007, management of M goaded that a loss for this matter was probable and represented that the estimate of loss was in the range of $15 million to $20 million, with $17 million being the most likely amount of loss inside the range.See more Beowulf essay essayA control board trial took place in kinsfolk 2009.The jury reached a verdict on September 24, 2009, and a judgment was ordered in upgrade of W. The judgment required M to pay W $18.5 million.In November 2009, M filed a Notice of call forth with the Court of Appeals.In December 2010, the Court of Appeals issued a ruling in favor of Ms appeal and reversed the lower courts ruling on the matter. This me ant that the Court of Appeals overturned the jury verdict and the $18.5 million judgment against M.On January 6, 2011, W filed a petition for a re-hearing before the said(prenominal) panel of appellate adjudicate against the reversal of ruling by Court of Appeals.On February 10, 2011, the appellate judges declined the petition for a re-hearing.On February 28, 2011, management of M determined this matter was closed upon discussions with in-house legal counsel.