# ASC 450-10-05: Contingencies — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/450/10/#05-overview-and-background) 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): 2026-09-10T00:26:51.228Z to 2026-09-10T00:26:51.228Z Record version: sha256:14aade1666094bf5a34d71ac616c74e8720c22222fa0307bab67383de12647e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/450/10/#05-overview-and-background) SEC content: no ##### [450-10-05-1](https://asc.understandingaccounting.org/asc/450/10/#450-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:51.228Z to 2026-09-10T00:26:51.228Z Record version: sha256:af9090e7997e2345ae0213db18cab20c0ea58f3f8120f3c715b97204bc601ddd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Contingencies Topic includes the following Subtopics: 1. a Overall 2. b Loss Contingencies 3. c Gain Contingencies. ##### [450-10-05-2](https://asc.understandingaccounting.org/asc/450/10/#450-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:51.228Z to 2026-09-10T00:26:51.228Z Record version: sha256:31ee26c79761ce3524e0026394e59da0e94221970b42aeb186254e038fb12953 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [450-10-05-3](https://asc.understandingaccounting.org/asc/450/10/#450-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:51.228Z to 2026-09-10T00:26:51.228Z Record version: sha256:e0e5def74d271c1620f9514f2a77eb2aa07b770ae268e10194e6ecdbcdfdf160 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [450-10-05-4](https://asc.understandingaccounting.org/asc/450/10/#450-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:51.228Z to 2026-09-10T00:26:51.228Z Record version: sha256:77f02b6460af6d20a085a18366a68b39087022ec5f3f0a44c9e1e00ad6f30544 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Contingencies Topic establishes standards of financial accounting and reporting for loss contingencies and gain contingencies, including standards for disclosures. ##### [450-10-05-5](https://asc.understandingaccounting.org/asc/450/10/#450-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:51.228Z to 2026-09-10T00:26:51.228Z Record version: sha256:864a0ca740fb1cc0deec8b2be5033c09f41ab59628182a9284e73513cf9470a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [450-10-05-6](https://asc.understandingaccounting.org/asc/450/10/#450-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:51.228Z to 2026-09-10T00:26:51.228Z Record version: sha256:627e871f1bab0c7766f7a5cca1bf91ce184bc5051680e73e258be875ae3be6e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not all uncertainties inherent in the accounting process give rise to [contingencies](https://asc.understandingaccounting.org/glossary/c/#contingency "An existing condition, situation, or set of circumstances involving uncertainty as to possible gain (gain contingency) or loss (loss contingency) to an entity that will ultimately be resolved when one or more future events occur or fail to occur."). 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.