About this authority
- Publisher
- Financial Accounting Foundation
- Standing
- Primary authority
- Version
- Topic 450 as accessed 2026-08-08
- Relevant parts
- Topic 450, Contingencies; especially Subtopic 450-20 and the incorporated range-estimation guidance
- Currency
- current · checked Aug 8, 2026
Topic 450 addresses contingencies: uncertain outcomes that may result in gains or losses. Use Subtopic 450-20 to begin researching loss contingencies under United States generally accepted accounting principles (US GAAP). Check whether more specific guidance governs the item first.
Decide separately whether a loss must be recorded, how much to record, and what information the notes must provide. A probability judgment or an estimated range needs evidence; the calculation cannot supply it.
When accrual is required, paragraph 450-20-30-1 addresses the amount within a range. Use the better estimate if one exists; use the minimum only when no amount is a better estimate. Do not turn that conditional requirement into permission to choose whichever low number management prefers.