ASC 450 Contingencies

This Topic outlines the accounting and disclosure requirements for loss and gain contingencies.

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US GAAP

10 Overall 20 Loss Contingencies 30 Gain Contingencies 912 Contractors—Federal Government 954 Health Care Entities 958 Not-For-Profit Entities 980 Regulated Operations

Roadmap: Contingencies, Loss Recoveries, and Guarantees

ASC 450, Contingencies, outlines the accounting and disclosure requirements for loss and gain contingencies. An estimated loss from a loss contingency is recognized only if the available information indicates that (1) it is probable that an asset has been impaired or a liability has been incurred at the reporting date and (2) the amount of the loss can be reasonably estimated. Loss contingencies that do not meet both criteria for recognition still may need to be disclosed in the financial statements. Gain contingencies usually are not be reflected in the financial statements because to do so might be to recognize revenue before its realization. The Codification also provides certain industry-specific contingency guidance, but such guidance is included in the industry sections of the Codification.