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Wiley GAAP 2021, 2nd Edition
book

Wiley GAAP 2021, 2nd Edition

by Joanne M. Flood
March 2021
Intermediate to advanced content levelIntermediate to advanced
1424 pages
51h 16m
English
Wiley
Content preview from Wiley GAAP 2021, 2nd Edition

31ASC 450 CONTINGENCIES

  1. Perspective and Issues
    1. Subtopics
    2. Scope and Scope Exceptions
      1. ASC 450‐10
      2. ASC 450‐20
      3. ASC 450‐30
  2. Definitions of Terms
  3. Concepts, Rules, and Examples
    1. ASC 450‐10, Overall
    2. ASC 450‐20, Loss Contingencies
      1. Overview
      2. Levels of Probability
      3. Estimating the Loss
      4. Events Subsequent to Balance Sheet Date
      5. Unasserted Claims or Assessments
      6. Litigation
    3. ASC 450‐30, Gain Contingencies
    4. Other Sources

PERSPECTIVE AND ISSUES

Subtopics

ASC 450, Contingencies, contains guidance for reporting and disclosure of gain and loss contingencies and has three subtopics:

  • ASC 450‐10, Overall, which, along with ASC 450‐20 and 450‐30, provides guidance on accounting and disclosures for contingencies.
  • ASC 450‐20, Loss Contingencies, which describes accounting for potential liabilities in circumstances involving uncertainties.
  • ASC 450‐30, Gain Contingencies, which describes accounting and disclosure requirements for gain contingencies.

Scope and Scope Exceptions

ASC 450‐10 ASC 450‐10 applies to all entities. Not all uncertainties are contingencies. ASC 450‐10‐55 points out several common estimates that do not fall under the contingency guidance:

  • Depreciation
  • Estimates used in accruals
  • Changes in tax law

ASC 450 guidance does not apply to the recognition and initial measurement of:

  • Assets or liabilities arising from contingencies that are measured at fair value or
  • Assets arising from contingencies measured at an amount other than fair value on the acquisition date in a business ...
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Publisher Resources

ISBN: 9781119736172