A Roadmap to Accounting for Contingencies and Loss Recoveries (November 2019)
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This Roadmap provides
Deloitte’s insights into and interpretations of the accounting
guidance in ASC 450 on loss contingencies, gain contingencies, and
loss recoveries. The goal of this publication is to assist entities
in understanding and applying ASC 450.
In addition to
summarizing the accounting framework in ASC 450 and providing an
in-depth discussion of key concepts, the Roadmap includes examples
to illustrate how these concepts may be applied in practice. This
publication reflects guidance that is effective for public business
entities for annual reporting periods beginning on or after January
1, 2019, including ASC 606 and ASC 842 related to revenue and
leases, respectively. We have specifically highlighted sections of
the Roadmap that will be affected by an entity’s adoption of FASB
Accounting Standards Update 2016-13, which addresses credit
losses.
This Roadmap replaces
the Deloitte Q&As that were contained in ASC 450. To find the
text in the Roadmap that corresponds to a former Q&A, select the
“Contingencies” tab at the bottom of the Q&A to Roadmap
Quick Reference Guide and search for the
Q&A’s number or title.
Be sure to check out
other titles in Deloitte’s Roadmap series, our comprehensive,
easy-to-understand collection of accounting guides on selected
topics of broad interest to the financial reporting community.