Contingencies and Guarantees

How good are you at predicting the future? Navigating the uncertainties inherent in future events is a critical aspect of financial reporting. This is especially true when considering the presentation and disclosure requirements for loss and gain contingencies. In this contingencies and guarantees CPE course (1.0 CPE), you peer into the crystal ball and examine how to account for and disclose contingencies, guarantees, and commitments in accordance with U.S. GAAP (ASC 450). The course makes crystal-clear the understanding of what constitutes a contingency. It differentiates between items that fall within and outside the scope of ASC 450. Through practical examples and clear explanations, you identify loss contingencies and apply the criteria for determining whether they should be accrued, disclosed, or both in the financial statements.

Building upon this foundation, the course delves into the specific accounting and presentation requirements for gain contingencies. After that, you explore the complexities of accounting for guarantees under ASC 460. Therefore, this section will cover the initial recognition, subsequent measurement, and derecognition of guarantees, equipping you with the knowledge to accurately reflect these obligations in financial statements.

Lastly, the course explores disclosures. You learn the common disclosure requirements related to gain and loss contingencies, guarantees, and commitments. Understanding these requirements is essential for providing stakeholders with a complete and transparent view of an organization's potential future financial impacts and obligations. By the conclusion of this course, you will possess the practical skills and theoretical knowledge necessary to confidently and accurately account for and disclose these important aspects of financial reporting.

In summary, topics covered in this contingencies and guarantees CPE course include:

• Accounting for contingencies (ASC 450), including topics like unasserted claims, onerous contracts, and more!
• Accounting for guarantees (ASC 460)
• Commitments and other disclosures

This course is essential for any accountant or auditor who discloses or audits contingencies or guarantees accounted for under U.S. GAAP! It is fun and interactive, with plenty of practical examples to help you apply the guidance. While you may not be able to predict the future after this course concludes, you'll at least know how to account for and disclose contingencies - and isn't that more useful anyway!?

Interested in group discounts? Contact us to learn more.

 By the end of this course, you should be able to: 

• Identify whether loss contingencies should be accrued and/or disclosed under ASC 450 
• Recall the accounting and presentation requirements for gain contingencies 
• Recall the initial and subsequent accounting for guarantees under ASC 460 
• Identify common disclosures related to gain and loss contingencies, guarantees and commitments