On the Radar — Contingencies, Loss Recoveries, and Guarantees
Although the guidance in ASC 450 on accounting for contingencies has not changed significantly for decades, it is often challenging to apply this guidance because of the need for an entity to use significant judgment in doing so (e.g., when developing legal interpretations). Similarly, the guidance in ASC 460 on accounting for guarantee liabilities, which has existed for nearly two decades, is often difficult to apply because the determination of whether an arrangement constitutes a guarantee is complex.
The On the Radar is available on the Deloitte Accounting Research Tool Web site.