# ASC 275-912-50: Risks and Uncertainties — Contractors—Federal Government — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/275/912/#50-disclosure) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:22:29.312Z to 2026-09-09T23:22:29.312Z Record version: sha256:3aac94d5ff773236ca914a658d4537d8e815d4bc245712777fee358b1fc64208 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 275-912-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/275/912/#50-disclosure) SEC content: no ##### [275-912-50-1](https://asc.understandingaccounting.org/asc/275/912/#275-912-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:29.312Z to 2026-09-09T23:22:29.312Z Record version: sha256:f9622f965c1a645ed39426e4c6fade8aa8c01e90a1ff824ad86ca1768f4c1c19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Termination Claims ##### [275-912-50-2](https://asc.understandingaccounting.org/asc/275/912/#275-912-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:29.312Z to 2026-09-09T23:22:29.312Z Record version: sha256:8cf43bf1f7f4322d5523baa529f898577436772c203a3a4b594b4c5a2a3c5bdd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some circumstances it will be impossible to make a reasonable estimate of a termination claim in time for inclusion in the financial statements of the period in which the termination occurs. Effect may then be given in the statements to those parts of the termination claim that are determinable with reasonable certainty and disclosure made, by note or otherwise, of the status of the remainder. ##### [275-912-50-3](https://asc.understandingaccounting.org/asc/275/912/#275-912-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:29.312Z to 2026-09-09T23:22:29.312Z Record version: sha256:67515c15252dc707f1d049c6bf9ba90c5e2684b992f962f5ff55c3236994e712 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the contractor's claim includes items of known controversial nature it shall be stated at the amount estimated to be collectible. If a particular termination claim or part thereof is so uncertain in amount that it cannot be reasonably estimated, it is preferable not to give effect to that part of the claim in the financial statements. If the total of such undeterminable elements is material, the circumstances shall be disclosed in statements issued or available to be issued (as discussed in Section 855-10-25) before the removal of the uncertainty. In an extreme circumstance involving undeterminable claims, consideration shall be given to delaying the issuance of financial statements until necessary data are available. ##### [275-912-50-4](https://asc.understandingaccounting.org/asc/275/912/#275-912-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:29.312Z to 2026-09-09T23:22:29.312Z Record version: sha256:6791a3ef1c1d7bb3eb13cdd87c57e1725b994df6602c24ae581d90da7e48cd9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect of a contract termination shall be reflected in the financial statements of the contractor in the period in which the termination occurs, or earlier if the termination is a subsequent event occurring before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25) and attributable to conditions that existed at the date of the balance sheet. If sufficient information is not available to predict the effect of a very recent termination, then the best information available shall be disclosed in the notes to financial statements in conformity with Topic 450. The effective date of termination shall be the date at which the contractor acquires the right to receive payment on the terminated portion of the contract. ##### [275-912-50-5](https://asc.understandingaccounting.org/asc/275/912/#275-912-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:29.312Z to 2026-09-09T23:22:29.312Z Record version: sha256:ed4f5636dd20872f03da8a3fad000af18a9249650e6e2be4fd1e2e6f4b3603fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Significant items of a known controversial nature also shall be disclosed in the notes to financial statements, although estimates of ultimate amounts to be realized may not be determinable. ##### [275-912-50-6](https://asc.understandingaccounting.org/asc/275/912/#275-912-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:29.312Z to 2026-09-09T23:22:29.312Z Record version: sha256:544ceb592a8919a7acadabe4d1a76b4332670d095a29bd46cfd3cdadd3f068fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The government contractor is subject to a degree of risk different from its commercial counterpart because of the unilateral contract right of the government to terminate a contract. If there are indications that a contract termination may occur and the termination would have a material effect on the contractor's operations, disclosure of the circumstances and the potential effects shall be made in the notes to financial statements. Indicators of a potential contract termination include notice of a possible termination, contract performance problems, procurement cutbacks, and so forth. ##### [275-912-50-7](https://asc.understandingaccounting.org/asc/275/912/#275-912-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:29.312Z to 2026-09-09T23:22:29.312Z Record version: sha256:2da2fabb2b233671f49996f659bf554ad7b51267d59f96610925699580011712 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [420-10-50-1](https://asc.understandingaccounting.org/asc/420/10/#420-10-50-1) provides guidance on information about contract terminations to be disclosed in notes to financial statements.