Deloitte
Accounting Research Tool
...
On the Radar

Contingencies, Loss Recoveries, and Guarantees

Image cannot be displayed

On the Radar — Contingencies, Loss Recoveries, and Guarantees

Although the guidance in ASC 450 on accounting for contingencies has not changed significantly for decades, it is often challenging to apply this guidance because of the need for an entity to use significant judgment in doing so (e.g., when developing legal interpretations). Similarly, the guidance in ASC 460 on accounting for guarantee liabilities, which has existed for nearly two decades, is often difficult to apply because the determination of whether an arrangement constitutes a guarantee is complex.