Measure ranges and control disclosure

A supported loss range runs from $180,000 to $420,000. Which amount belongs in the entry? “Conservative” and “take the midpoint” are not evidence.

Best estimate before minimum

If one amount in the reasonable range is a better estimate, recognize it. If no amount is better, recognize the minimum under the bounded US-GAAP policy. The minimum rule applies only after the probable-and-estimable recognition gates are met.

For Cedar Trail, no amount is better. The entry is $180,000, and the $240,000 remaining possible exposure stays visible. In a separate teaching hypothetical, not a Cedar Trail case fact, suppose $300,000 is supported as the better estimate. The entry becomes $300,000. The range did not change; the evidence did.

Disclosure is a controlled output, not generated prose

The workpaper should contain matter ID, nature, condition date, status, likelihood owner and date, recognized amount, supported range or inability to estimate, exposure beyond accrual, specialized Topic, recovery lane, counsel review, and evaluation-through date. Legal and accounting reviewers own the final wording.

Gains and recoveries stay separate

Do not mirror the loss matrix to recognize a favorable award. Do not net a possible insurance recovery against a recognized loss without its own scope, recognition, collectibility, and presentation support. A gross loss and separate recovery file show more truth than a hopeful net number.

Exit check

Prepare the $180,000 entry, calculate additional exposure, and draft a five-line disclosure support outline. Then identify the exact evidence that would change the amount to $300,000.