Filed - Supreme Court of Texas

appeals he will owe a portion of that, he should include some portion of
that judgment on his net worth statement. 27
A contingent liability becomes an actual liability when there is no chance
it will go away. 28
On cross examination, Melton testified that:
He practiced accountancy from 2004 to 2008, primarily in the preparation
of tax returns. 29
He has practiced law for three and one half years and has not practiced
accountancy during that period. 30
He was not familiar with the Dallas Court of Appeals’ Anderton decision
before being retained by the McCulloughs. 31
Under GAAP, there are three choices for liability: (1) probable, (2)
reasonably possible, and (3) remote. 32
o “Probable” means likely to occur, and “accrue” means put the
number in the calculation of net worth. 33 What is probable and
what is not is a gray area. 34
o “Reasonably possible” means “the chance of the future event or
events occurring is more than remote but less than likely, “ and if a
27 RR, Vol. 5 of 6, p. 21.
28 RR, Vol. 5 of 6, p. 24.
29 RR, Vol. 5 of 6, p. 25-26.
30 RR, Vol. 5 of 6, p. 25-26.
31 RR, Vol. 5 of 6, p. 29.
32 RR, Vol. 5 of 6, p. 36.
33 RR, Vol. 5 of 6, p. 35.
34 RR, Vol. 5 of 6, p. 37.
APPELLEES’ RESPONSE TO MOTION TO REVIEW ORDER ON SUPERSEDEAS BOND – Page 12