# ASC 450-10: Contingencies — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/450/10/) 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): 2026-09-10T00:26:49.502Z to 2026-09-10T00:26:58.831Z Record version: sha256:7078c1b174f841eaf9cdc5491292974a7ee2ed9947a2d7bc586cc3cef7ee22c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-10: Contingencies — Overall ### Machine-generated study aids ```json { "summary": "ASC 450-10 is the Overall subtopic of the Contingencies Topic; it sets the pervasive scope, definitions, and cross-references for gain and loss contingencies addressed in 450-20 and 450-30. A contingency exists when an existing condition, situation, or set of circumstances involves uncertainty that will be resolved by a future event confirming the acquisition of an asset, reduction of a liability, loss or impairment of an asset, or incurrence of a liability (450-10-05-5). Critically, the mere use of an estimate does not create a contingency (450-10-05-6), and the Topic does not apply to recognition and initial measurement of contingency-related assets and liabilities measured at fair value in a business combination, NFP acquisition, or joint venture formation (450-10-15-2A).", "key_points": [ "Resolution of the uncertainty must confirm one of four outcomes: acquisition of an asset, reduction of a liability, loss or impairment of an asset, or incurrence of a liability (450-10-05-5).", "Not all uncertainty is a contingency — the fact that an estimate is involved does not itself create a loss or gain contingency (450-10-05-6).", "The Contingencies Topic applies to all entities (450-10-15-2), but excludes recognition and initial measurement of assets and liabilities arising from contingencies measured at fair value (and assets measured at other than fair value) on the acquisition date under Subtopic 805-20, 958-805, or on the formation date under 805-60 (450-10-15-2A).", "Depreciation, and related recurring repairs, maintenance, and overhauls, are not contingencies because expiration of the asset's utility is not uncertain (450-10-55-2).", "Accrued amounts owed for services already received, such as advertising and utilities, are not contingencies even if estimated, because the obligation has definitely been incurred (450-10-55-3).", "The possibility of a future change in the tax law is not an uncertainty within the meaning of the Topic (450-10-55-4).", "ASC 450 is not all-inclusive; Topic-specific contingency guidance exists elsewhere (e.g., uncertainty in income taxes at 740-10-25, variable consideration at 606-10-32-5 through 32-14, variable lease payments at 842-20-55-1 through 55-2, insurance contracts at 944-40)." ], "categories": [ "Contingencies and guarantees", "Recognition", "Disclosure", "Business combinations" ], "audience_level": "introductory", "student_note": "This is the gatekeeping subtopic: before applying the probable/reasonably possible/remote framework of 450-20, you must first confirm you actually have a contingency. The classic error is treating any estimated accrual (depreciation, accrued utilities, warranty-like estimates of known obligations) as a contingency, when the defining feature is uncertainty about whether an asset or liability exists at all, resolvable only by a future event.", "related_topics": [ "450-20", "450-30", "805-20", "740-10", "606-10", "944-40" ], "key_concepts": [ "loss contingency", "gain contingency", "existing condition involving uncertainty", "estimates versus contingencies", "scope exception for business combinations", "future confirming event", "disclosure of uncertainties" ] } ``` Source downloaded (UTC): 2026-09-10T00:26:49.502Z to 2026-09-10T00:26:49.502Z Record version: sha256:b82ae467ee8d6c224e0572cee13f67372e62bd222f34c75a13421e0a630d547d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/450/10/#00-status) SEC content: no ##### [450-10-00-1](https://asc.understandingaccounting.org/asc/450/10/#450-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:49.502Z to 2026-09-10T00:26:49.502Z Record version: sha256:c3f946ffe4cc04978fdb3ddb8b9302d3988a197113eb3fe2e59cc9d89d855a2d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
AcquirerAmendedAccounting Standards Update No. 2025-0305/12/2025
Acquisition by a Not-for-Profit EntityAddedAccounting Standards Update No. 2010-0701/28/2010
BusinessAmendedAccounting Standards Update No. 2017-0101/05/2017
Commencement Date of the Lease (Commencement Date)AddedAccounting Standards Update No. 2016-0202/25/2016
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
Corporate Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
Formation DateAddedAccounting Standards Update No. 2023-0508/23/2023
Joint VentureAddedAccounting Standards Update No. 2023-0508/23/2023
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
LesseeAddedAccounting Standards Update No. 2016-0202/25/2016
LessorAddedAccounting Standards Update No. 2016-0202/25/2016
ReinsuranceAddedAccounting Standards Update No. 2016-1912/14/2016
Transaction PriceAddedAccounting Standards Update No. 2014-0905/28/2014
Underlying AssetAddedAccounting Standards Update No. 2016-0202/25/2016
Variable Interest EntitySupersededAccounting Standards Update No. 2025-0305/12/2025
Variable Lease PaymentsAddedAccounting Standards Update No. 2016-0202/25/2016
450-10-15-2AAmendedAccounting Standards Update No. 2023-0508/23/2023
450-10-15-2AAmendedAccounting Standards Update No. 2010-0701/28/2010
450-10-60-1AmendedAccounting Standards Update No. 2025-1112/08/2025
450-10-60-2AmendedAccounting Standards Update No. 2016-1912/14/2016
450-10-60-3AmendedAccounting Standards Update No. 2014-0905/28/2014
450-10-60-4AmendedAccounting Standards Update No. 2014-0905/28/2014
450-10-60-8AmendedAccounting Standards Update No. 2016-0202/25/2016
450-10-60-12SupersededAccounting Standards Update No. 2014-0905/28/2014
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. Source downloaded (UTC): 2026-09-10T00:26:53.128Z to 2026-09-10T00:26:53.128Z Record version: sha256:812c92cee2e8f5e15195e83500493732c46f77ae84e865e184f11c4627e0739c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/450/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [450-10-15-1](https://asc.understandingaccounting.org/asc/450/10/#450-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:53.128Z to 2026-09-10T00:26:53.128Z Record version: sha256:8fc9c5fa8333d379398c7536a10553a27d452e9fe8264628e77319e965daccc2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for all Subtopics of the Contingencies Topic. Unless explicitly addressed within specific Subtopics, the following scope guidance applies to all Subtopics of the Contingencies Topic. #### Entities ##### [450-10-15-2](https://asc.understandingaccounting.org/asc/450/10/#450-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:53.128Z to 2026-09-10T00:26:53.128Z Record version: sha256:6d8eb0edc7f20ac82989abf9ffd6e21d92ae329e42e8391104657917068abd54 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Contingencies Topic applies to all entities. #### Transactions ##### [450-10-15-2A](https://asc.understandingaccounting.org/asc/450/10/#450-10-15-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:53.128Z to 2026-09-10T00:26:53.128Z Record version: sha256:29d8a24ce6f45a493f4480db3f03a45d62710644d7a3cc28081e8e55bd71c830 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Contingencies Topic does not apply to the recognition and initial measurement of assets or liabilities arising from contingencies that are measured at fair value or assets arising from contingencies measured at an amount other than fair value on the [acquisition date](https://asc.understandingaccounting.org/glossary/a/#acquisition-date "The date on which the acquirer obtains control of the acquiree.") in a business combination under the requirements of Subtopic 805-20, on the acquisition date in an [acquisition by a not-for-profit entity](https://asc.understandingaccounting.org/glossary/a/#acquisition-by-a-not-for-profit-entity "A transaction or other event in which a not-for-profit acquirer obtains control of one or more nonprofit activities or businesses and initially recognizes their assets and liabilities in the acquirer's financial statements. When applicable guidance in Topic 805 is applied by a not-for-profit entity, the term business combination has the same meaning as this term has for a for-profit entity. Likewise, a reference to business combinations in guidance that links to Topic 805 has the same meaning as a reference to acquisitions by not-for-profit entities.") under the requirements of Subtopic 958-805, or on the [formation date](https://asc.understandingaccounting.org/glossary/f/#formation-date "The formation date of a joint venture is the date on which an entity initially meets the definition of a joint venture, which is not necessarily the legal entity formation date. The formation date is the measurement date for the formation transaction. If multiple arrangements are accounted for as a single transaction that establishes the formation of a joint venture, the formation date is the measurement date for all arrangements that form part of the single formation transaction.") in a [joint venture](https://asc.understandingaccounting.org/glossary/j/#joint-venture "An entity owned and operated by a small group of businesses (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a joint venture frequently is to share risks and rewards in developing a new market, product, or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a joint venture. The ownership of a joint venture seldom changes, and its equity interests usually are not traded publicly. A minority public ownership, however, does not preclude an entity from being a joint venture. As distinguished from a corporate joint venture, a joint venture is not limited to corporate entities.") formation under the requirements of Subtopic 805-60. Those Subtopics provide the recognition and initial measurement requirements for assets and liabilities arising from contingencies measured at fair value and for assets arising from contingencies measured at an amount other than fair value as part of a business combination, an acquisition by a not-for-profit entity, or a joint venture formation. #### Other Considerations ##### [450-10-15-3](https://asc.understandingaccounting.org/asc/450/10/#450-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:53.128Z to 2026-09-10T00:26:53.128Z Record version: sha256:d4d79207c2ea93050c4e358ac138c006ecff534a3ea3ce61ef34a7340339b98e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some cases, there may be uncertainty about whether a situation is 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."). Section 450-10-55 includes several situations that are not contingencies, and thus are outside the scope of the Contingencies Topic. Source downloaded (UTC): 2026-09-10T00:26:56.894Z to 2026-09-10T00:26:56.894Z Record version: sha256:7eede4c9ddfb21aed2bb048ba44600fa724cfca6d707588ae31bb693ba874990 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/450/10/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [450-10-55-1](https://asc.understandingaccounting.org/asc/450/10/#450-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:56.894Z to 2026-09-10T00:26:56.894Z Record version: sha256:314d359f0a3d482ebb9f4b75c1f2d6a869998fc2fb45d27740931f84484f8f03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:56.894Z to 2026-09-10T00:26:56.894Z Record version: sha256:56896f8f0fe518f4a01131651258f1523b3c2951cac3ddfc7b65167c6de66bca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:56.894Z to 2026-09-10T00:26:56.894Z Record version: sha256:eb2eaa2bafdd85a4c69336f795bc24ad518faeefd1eafaa5bf91a2eb1ebe394c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:56.894Z to 2026-09-10T00:26:56.894Z Record version: sha256:12ac4deb39b1145400ff2c4eaff1fdba04285ae6a6d541be02bda39db2bef179 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The possibility of a change in the tax law in some future year is not an uncertainty. Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:f86bc0a72198972d02a7aeb1989c776de602743646d4b02af383e3acb4c28350 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/450/10/#60-relationships) SEC content: no #### Interim Reporting ##### [450-10-60-1](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:dccb8ebac5dc0a4dbcef837b5f8c6c0de870395431499278af0ec73a1a1ebd95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For [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.") and other uncertainties that could be expected to affect the fairness of presentation of financial data at an interim date, see paragraph [270-10-50-6](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-6). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For [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.") and other uncertainties that could be expected to affect the fairness of presentation of financial data at an interim date, see paragraph [270-10-50-69](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-69). #### Other Assets and Deferred Costs ##### [450-10-60-2](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:439ffd5b9332cbdf78c4dfe4e625f960e9b59fae1e1fcc08360ab72a96a44129 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For contingencies associated with insurance and [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") contracts that do not transfer insurance risk, see Section 340-30. #### Revenue Recognition ##### [450-10-60-3](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:dbbfb063978e921d2cbba25e69d50ee03ff995ac537de8fbf50e59862e4ac900 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See the guidance on estimating and constraining estimates of variable consideration (for example, a sale with a right of return) in paragraphs [606-10-32-5 through 32-14](https://asc.understandingaccounting.org/asc/606/10/#606-10-32-5) included in the [transaction price](https://asc.understandingaccounting.org/glossary/t/#transaction-price "The amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.") for [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with [customers](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration."). ##### [450-10-60-4](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:2ae14203fe784f503bd7f0bae1cf1e3c26d85101563e9894a7aa23c08e9797ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For cases in which a nonmonetary asset is destroyed or damaged (that is, an involuntary conversion) and the amount of monetary assets to be received is uncertain, see paragraph [610-30-25-4](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-4). #### Other Expenses ##### [450-10-60-5](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:1842f03be17752ab8bd8b26ea6aaf4b02135085f16cc64fd7bdf643902b21216 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For accounting by an insured entity for the contingencies associated with a multiple-year retrospectively rated insurance contract accounted for as insurance, see the Multiple-Year Retrospectively Rated Contracts Subsections of Subtopic 720-20. #### Income Taxes ##### [450-10-60-6](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:78e965bd7e304b561e8247863e8cecea175245534cae1a336e46a4a950546353 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For accounting for uncertainty in income taxes, see Section 740-10-25. #### Business Combinations ##### [450-10-60-7](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:4249ec5923e517c1c9c5b747a6ea463f59b61c823d76e18fd73ea44d86199815 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For recognition of contingent obligations for contractual termination benefits and curtailment losses under employee benefit plans that will be triggered by the consummation of the business combination, see paragraphs [805-20-55-50 through 55-51](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-50) . #### Leases ##### [450-10-60-8](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:33e1bd95bf2643cf179a17d15282862043e417dd03da6cab874a7a5bdac278a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For [variable lease payments](https://asc.understandingaccounting.org/glossary/v/#variable-lease-payments "Payments made by a lessee to a lessor for the right to use an underlying asset that vary because of changes in facts or circumstances occurring after the commencement date, other than the passage of time."), see paragraphs [842-20-55-1 through 55-2](https://asc.understandingaccounting.org/asc/842/20/#842-20-55-1) . #### Financial Services—Insurance ##### [450-10-60-9](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:69b99245b3656f51e931190c3a56a327a40d0bdd9acd72cbd4ec45d9063c3308 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For contingencies that arise when an insurance entity or a reinsurance entity issues an insurance contract, see Subtopic 944-40. ##### [450-10-60-10](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:f47ee3b52f4a646b58c708923736844b21824726d6b86b261376b1eb080c8fba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For contingencies associated with a reinsurance contract between insurance entities (including retrocession), see Section 944-20-15. ##### [450-10-60-11](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:6f2e7ee9fd9435895dbea512cca743bb6e99cc72d6ab7fd86a171ae104e2225c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For contingencies associated with multiple-year retrospectively rated contracts, see Subtopic 944-20. ##### [450-10-60-12](https://asc.understandingaccounting.org/asc/450/10/#450-10-60-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:26:58.831Z to 2026-09-10T00:26:58.831Z Record version: sha256:920124ee7cd6d1ae6c78280037c722e90c79181b4fc0d8d773f0716cc8624c70 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/).