{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/405/980/#55-implementation-guidance-and-illustrations","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"405","topic_title":"Liabilities","subtopic":"405-980","subtopic_title":"Regulated Operations","section":{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"405-980-55-1","para":"55-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_46075834-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This paragraph provides guidance on implementing paragraph <a href=\"/asc/405/980/#405-980-25-1\" class=\"xref\">980-405-25-1(b)</a>. A regulator may direct a regulated entity to include an amount for a contingency in allowable costs for rate-making purposes even though the amount does not meet the criteria in Subtopic <a altsource=\"GUID-E13146CA-1337-48D7-BF5C-574604DA8631.ditamap\" class=\"ditamap\">450-20</a> for recording. </span></span><span class=\"sfragment\" id=\"sfr_46075967-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For example, a regulator may direct a regulated entity to include an amount for repairs of expected future uninsured storm damage. If a cost to repair storm damage is not subsequently incurred, the increased charges will have to be refunded to customers through future rate reductions. Accordingly, the regulated entity would recognize the amounts charged pursuant to such rates as liabilities rather than as revenues. If a cost to repair storm damage is subsequently incurred, the entity would charge that cost to expense and reduce the liabilities at that time by recognizing income in amounts equal to the cost. </span></span></div></div>","snippet":"This paragraph provides guidance on implementing paragraph 980-405-25-1(b). A regulator may direct a regulated entity to include an amount for a contingency in allowable costs for rate-making purposes even though the amo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9bf3390594965f4ffb3e273741ae2620f10652de3203cfbba8fd6fd079ac12e0","downloaded_from":"2026-09-10T00:20:26.812Z","last_downloaded_at":"2026-09-10T00:20:26.812Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478509","source_sha256":"86d53acc1fe7e63b9330c01d8080c3f7a0ac13ee958e179e07a0c6b30ec43ad6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4afe5916a8d6f80e09d0ecac8d9499ae30fa666e1e329a7f4ac5742d934622f3","downloaded_from":"2026-09-10T00:20:26.812Z","last_downloaded_at":"2026-09-10T00:20:26.812Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478509","source_sha256":"86d53acc1fe7e63b9330c01d8080c3f7a0ac13ee958e179e07a0c6b30ec43ad6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bb40587369d1bc6e13fcac3d55a50ce7effe8dd1057d3171c8442fbc9faabef2","downloaded_from":"2026-09-10T00:20:26.812Z","last_downloaded_at":"2026-09-10T00:20:26.812Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478509","source_sha256":"86d53acc1fe7e63b9330c01d8080c3f7a0ac13ee958e179e07a0c6b30ec43ad6"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bb40587369d1bc6e13fcac3d55a50ce7effe8dd1057d3171c8442fbc9faabef2","downloaded_from":"2026-09-10T00:20:26.812Z","last_downloaded_at":"2026-09-10T00:20:26.812Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478509","source_sha256":"86d53acc1fe7e63b9330c01d8080c3f7a0ac13ee958e179e07a0c6b30ec43ad6"}}