Wiley GAAP 2023

31ASC 450 CONTINGENCIES

• Perspective and Issues
  • Subtopics
  • Scope and Scope Exceptions
    • ASC 450-10
    • ASC 450-20
    • ASC 450-30
• Definitions of Terms
• Concepts, Rules, and Examples
  • ASC 450-10, Overall
  • ASC 450-20, Loss Contingencies
    • Overview
    • Levels of Probability
    • Estimating the Loss
    • Events Subsequent to Balance Sheet Date
    • Unasserted Claims or Assessments
    • Litigation
• ASC 450-30, Gain Contingencies
• 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 ...