Understanding Accounting
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FASB Statement 5, Accounting for Contingencies—historical text

Historical FASB source for the contingency architecture, examples, probability language, disclosure logic, and separation of ordinary estimated accruals from contingencies.

Authority and currency

About this authority

Publisher
Financial Accounting Foundation
Standing
Primary authority
Version
Statement 5 historical text
Relevant parts
Paragraphs 1–17 and examples; current Topic 450 controls
Currency
superseded · checked Aug 8, 2026

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Statement 5 is retained because its examples make two durable distinctions visible. An estimate does not by itself create a contingency, and an accounting accrual does not set aside cash. Current Topic 450 remains the authority for a dated conclusion.