that, if a reasonable probability exists , a liability of the whole amount should be shown in statement II. The estimated liability was caloulated in aacOrdanC8 with appendix D of the United Nations Staff Rules. It 5s based on actuarial tables. 98, We also reviewed the notes to the financial statements in terms of compliance with internationally accepted accounting principles. Generally, the notes provide sufficient information aa to such requirements. The disclosure of the contingent liability resulting from termination benefits that UNDP will have to pay to its staff members in future years was made in the 1989 statements in note 7, as recomnmded in our 1988 report. p ese tation of financial statement6 r n 99. Given the nature and the amount of savings in prior years’ unliquidated obligations, they should be disclosed in the notes to the financial statements, since currently, the practice is to net those savings against the current year’s expenditure, 100. Note 1 to the financial statements indicates that income is aCcOuBted for on a cash basis. UNDP shows a letter of credit in the amount of $US 2.2 million in statement XI. The income from this was not accounted for on a cash basis. Although the total amount is not considered material, thought should b8 given to disclosing such differences from the cash principle in the notes to the financial statements. 101. The Administration explained that the letter of Credit was irrevocabl8 and a8 such is considered as equivalent to cash, thereby complying with the prtnoipl8 of accounting for income on a cash basis, The Administration aid subsequently disclose subject matter in not8 3 to the financial statements. 102. As ill th8 CaSO of our r8Vf8W of URDP aCCOUOtS r8C8iVsb18 and 8U6p8n88 aOcOUOt8 (a88 pars. 71), we found considerable uncl8ar8d amount8 wh8n auditing th8 account8 
**Analysis**
The text appears to be discussing the financial statements and accounting practices of the United Nations Development Programme (UNDP), which suggests that the topic is related to international development and humanitarian aid. The text mentions specific financial details, such as estimated liabilities, contingent liabilities, and notes to the financial statements, which implies that the context is related to economic development and financial management.

**Category**
Humanitarian aid and relief, International trade