U.S. GAAP Codification of Accounting Standards Guide by AccountingINFO.com

U.S. GAAP Codification of Accounting Standards

Principles of Accounting, Intermediate Financial Accounting, U.S. GAAP Textbook

Accounting by Topic, Accounting Terms Dictionary

U.S. GAAP Accounting Standards
Codification Topic 450-20: Loss Contingencies

Codification Topic 450-20
Loss Contingencies

Loss contingency
--> a loss will incur if certain future events occur or not occur

Recognition of a loss contingency
1. Recognized in the financial statements
2. Disclosed in the notes

Recognized in the financial statements
--> if both (A) and (B) are satisfied
(A) it is "probable" that a loss will incur
(B) amount of loss can be reasonably estimated

Disclosed in the notes, without recognition
--> if it is "reasonably possible" that a loss will incur

Disclosure is not required
--> if the possibility of loss is "remote"

Codification Topic 450
Contingencies

Subtopics of Codification Topic 450

   450-10 Overall
   450-20 Loss contingencies
   450-30 Gain contingencies

Accounting Terms of Codification Topic 450-10

   Contingency
   Gain contingency
   Loss contingency

Accounting Terms of Codification Topic 450-20

   Probable
   Reasonably possible
   Remote

Accounting Terms of Codification Topic 450-30