Contingencies and Guarantees

How good are you at predicting the future? It’s not always easy to guess the outcome of future events, especially when you must potentially consider them in your U.S. GAAP financial statements! After reviewing the definition of a contingency and providing you with examples of items that are both in and out of the scope of ASC 450, this CPE-eligible, eLearning course (1.0 CPE) walks you through determining whether a loss contingency exists, as well as whether it needs to be recorded in the financial statements. In addition to loss contingencies, this online course discusses the accounting considerations for unasserted claims, onerous contracts, and gain contingencies. It then delves into the accounting for guarantees in accordance with ASC 460, including related disclosures. The course wraps up with a discussion of the disclosure requirements within U.S. GAAP related to commitments.

 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