{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/450/10/#05-overview-and-background","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":"450","topic_title":"Contingencies","subtopic":"450-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"450-10-05-1","para":"05-1","html":"
The Contingencies Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Loss Contingencies
  3. c
    Gain Contingencies.
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This Subtopic, in combination with Subtopics 450-20 and 450-30, provides general guidance regarding gain and loss contingencies. Other Topics include gain or loss contingencies related to those specific Topics. Therefore, the Contingencies Topic does not include all standards related to contingencies. While not intended to be all-inclusive, the following Relationships Sections within the Contingency Subtopics provide links to many Topic-specific contingencies:
  1. a
    See Section 450-10-60 for references to other standards related to uncertainties that could result in either a gain or a loss.
  2. b
    See Section 450-20-60 for references to other standards related to uncertainties that could result in a future loss.
  3. c
    See Section 450-30-60 for references to other standards related to uncertainties that could result in a future gain.
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The Overall Subtopic establishes the scope and scope exceptions for the Contingencies Topic, provides definitions, and includes links to the standards that appear in Subtopics 450-20 and 450-30.
","snippet":"The Overall Subtopic establishes the scope and scope exceptions for the Contingencies Topic, provides definitions, and includes links to the standards that appear in Subtopics 450-20 and 450-30.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e0e5def74d271c1620f9514f2a77eb2aa07b770ae268e10194e6ecdbcdfdf160","downloaded_from":"2026-09-10T00:26:51.228Z","last_downloaded_at":"2026-09-10T00:26:51.228Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482952","source_sha256":"9694d1bf51ed188feec4119e03e3c903dddc1a06e6247bb9fede77279fbbc241"}},{"citation":"450-10-05-4","para":"05-4","html":"
The Contingencies Topic establishes standards of financial accounting and reporting for loss contingencies and gain contingencies, including standards for disclosures.
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Resolution of the uncertainty may confirm any of the following:
  1. a
    The acquisition of an asset
  2. b
    The reduction of a liability
  3. c
    The loss or impairment of an asset
  4. d
    The incurrence of a liability.
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Not all uncertainties inherent in the accounting process give rise to contingencies. Estimates are required in financial statements for many ongoing and recurring activities of an entity. The mere fact that an estimate is involved does not of itself constitute the type of uncertainty referred to in the definition of a loss contingency or a gain contingency. Several examples of situations that are not contingencies are included in Section 450-10-55.
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