# ASC 450-10-55: Contingencies — Overall — 55 Implementation Guidance and Illustrations

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/450/10/#55-implementation-guidance-and-illustrations)

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## ASC 450-10-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/450/10/#55-implementation-guidance-and-illustrations)

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#### Implementation Guidance

##### [450-10-55-1](https://asc.understandingaccounting.org/asc/450/10/#450-10-55-1)

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This Section includes several situations that do not meet the definition of a [contingency](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."), and thus are outside the scope of this Topic.

##### [450-10-55-2](https://asc.understandingaccounting.org/asc/450/10/#450-10-55-2)

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The fact that estimates are used to allocate the known cost of a depreciable asset over the period of use by an entity does not make depreciation a contingency; the eventual expiration of the utility of the asset is not uncertain. Thus, depreciation of assets is not a contingency, nor are such matters as recurring repairs, maintenance, and overhauls, which interrelate with depreciation. This Topic is not intended to alter present depreciation practices as described in Section 360-10-35.

##### [450-10-55-3](https://asc.understandingaccounting.org/asc/450/10/#450-10-55-3)

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Amounts owed for services received, such as advertising and utilities, are not contingencies even though the accrued amounts may have been estimated; there is nothing uncertain about the fact that those obligations have been incurred.

##### [450-10-55-4](https://asc.understandingaccounting.org/asc/450/10/#450-10-55-4)

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The possibility of a change in the tax law in some future year is not an uncertainty.