{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/450/20/#50-disclosure","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":"450-20","subtopic_title":"Loss Contingencies","section":{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Accruals for Loss Contingencies","paragraphs":[{"citation":"450-20-50-1","para":"50-1","html":"
Disclosure of the nature of an accrual made pursuant to the provisions of paragraph 450-20-25-2, and in some circumstances the amount accrued, may be necessary for the financial statements not to be misleading. Terminology used shall be descriptive of the nature of the accrual, such as estimated liability or liability of an estimated amount. The term reserve shall not be used for an accrual made pursuant to paragraph 450-20-25-2; that term is limited to an amount of unidentified or unsegregated assets held or retained for a specific purpose. Examples 1 (see paragraph 450-20-55-18) and 2, Cases A, B, and D (see paragraphs 450-20-55-23, 450-20-55-27, and 450-20-55-32) illustrate the application of these disclosure standards.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
220-40-65-1Disclosure of the nature of an accrual made pursuant to the provisions of paragraph 450-20-25-2, and in some circumstances the amount accrued, may be necessary for the financial statements not to be misleading. Terminology used shall be descriptive of the nature of the accrual, such as estimated liability or liability of an estimated amount. The term reserve shall not be used for an accrual made pursuant to paragraph 450-20-25-2; that term is limited to an amount of unidentified or unsegregated assets held or retained for a specific purpose. Examples 1 (see paragraph 450-20-55-18) and 2, Cases A, B, and D (see paragraphs 450-20-55-23, 450-20-55-27, and 450-20-55-32) illustrate the application of these disclosure standards. See paragraphs
220-40-50-21 through 50-25
for additional disclosure requirements.
","snippet":"Disclosure of the nature of an accrual made pursuant to the provisions of paragraph 450-20-25-2, and in some circumstances the amount accrued, may be necessary for the financial statements not to be misleading. Terminolo…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9d758c8a1a809c1f8cf73fc1f0f9507711e1987c8a8545d79b77b1950c15a8e","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},{"citation":"450-20-50-2","para":"50-2","html":"
If the criteria in paragraph 275-10-50-8 are met, paragraph 275-10-50-9 requires disclosure of an indication that it is at least reasonably possible that a change in an entity's estimate of its probable liability could occur in the near term. Example 3 (see paragraph 450-20-55-36) illustrates this disclosure for an entity involved in litigation.
","snippet":"If the criteria in paragraph 275-10-50-8 are met, paragraph 275-10-50-9 requires disclosure of an indication that it is at least reasonably possible that a change in an entity's estimate of its probable liability could o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0d578bed0fcf0ec9e50c4ab1e88360be7499afd55edd0613bdecb4ad1d0fcfb","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:97c1e21c07a2b9ee9c3c86c0a9838db9bd92bf375d42905704a9a898212461cc","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},{"block":null,"heading":"Unrecognized Contingencies","paragraphs":[{"citation":"450-20-50-2A","para":"50-2A","html":"
The disclosures required by paragraphs
450-20-50-3 through 50-6
do not apply to credit losses on instruments within the scope of Topic 326 on measurement of credit losses. (See paragraph 310-10-50-21.)
","snippet":"The disclosures required by paragraphs 450-20-50-3 through 50-6 do not apply to credit losses on instruments within the scope of Topic 326 on measurement of credit losses. (See paragraph 310-10-50-21.)","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8d0ecf373bd44cb30ef8cd0595b6d7048e253d5863eb4ebfbc70cfac7e9c90f4","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},{"citation":"450-20-50-3","para":"50-3","html":"
Disclosure of the contingency shall be made if there is at least a reasonable possibility that a loss or an additional loss may have been incurred and either of the following conditions exists:
  1. a
    An accrual is not made for a loss contingency because any of the conditions in paragraph 450-20-25-2 are not met.
  2. b
    An exposure to loss exists in excess of the amount accrued pursuant to the provisions of paragraph 450-20-30-1.
Examples 1-3 (see paragraphs
450-20-55-18 through 55-37
) illustrate the application of these disclosure standards.
","snippet":"Disclosure of the contingency shall be made if there is at least a reasonable possibility that a loss or an additional loss may have been incurred and either of the following conditions exists:\n(a) An accrual is not made…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:381f08fd1cec8fb2aa625aebcf56e2e627ca533ba438899b1bba48b92a895b29","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},{"citation":"450-20-50-4","para":"50-4","html":"
The disclosure in the preceding paragraph shall include both of the following:
  1. a
    The nature of the contingency
  2. b
    An estimate of the possible loss or range of loss or a statement that such an estimate cannot be made.
","snippet":"The disclosure in the preceding paragraph shall include both of the following:\n(a) The nature of the contingency\n(b) An estimate of the possible loss or range of loss or a statement that such an estimate cannot be made.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:549530268618b316bd49af914aec0d25df987c4ad6a04dcb426f5981cecf6144","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},{"citation":"450-20-50-5","para":"50-5","html":"
Disclosure is preferable to accrual when a reasonable estimate of loss cannot be made. For example, disclosure shall be made of any loss contingency that meets the condition in paragraph 450-20-25-2(a) but that is not accrued because the amount of loss cannot be reasonably estimated (the condition in paragraph 450-20-25-2(b)). Disclosure also shall be made of some loss contingencies that do not meet the condition in paragraph 450-20-25-2(a)—namely, those contingencies for which there is a reasonable possibility that a loss may have been incurred even though information may not indicate that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements.
","snippet":"Disclosure is preferable to accrual when a reasonable estimate of loss cannot be made. For example, disclosure shall be made of any loss contingency that meets the condition in paragraph 450-20-25-2(a) but that is not ac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b2a44e7d8c2146d227854c31ffc7dbd1782902115b496b6f9e14310e07d9a6b","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},{"citation":"450-20-50-6","para":"50-6","html":"
Disclosure is not required of a loss contingency involving an unasserted claim or assessment if there has been no manifestation by a potential claimant of an awareness of a possible claim or assessment unless both of the following conditions are met:
  1. a
    It is considered probable that a claim will be asserted.
  2. b
    There is a reasonable possibility that the outcome will be unfavorable.
","snippet":"Disclosure is not required of a loss contingency involving an unasserted claim or assessment if there has been no manifestation by a potential claimant of an awareness of a possible claim or assessment unless both of the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db4f4c7b14a4349434636f02150fcfae721e8991baa64ca42965f5b51ae0d236","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},{"citation":"450-20-50-7","para":"50-7","html":"
Disclosure of noninsured or underinsured risks is not required by this Subtopic. However, disclosure in appropriate circumstances is not discouraged.
","snippet":"Disclosure of noninsured or underinsured risks is not required by this Subtopic. However, disclosure in appropriate circumstances is not discouraged.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ad18ba0f98aec8bea694015320ba223c126d4c7682f9821087d287c46ae6b55","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},{"citation":"450-20-50-8","para":"50-8","html":"
No disclosure about general or unspecified business risks is required by this Subtopic, however, Topic 275 requires disclosure of certain business risks.
","snippet":"No disclosure about general or unspecified business risks is required by this Subtopic, however, Topic 275 requires disclosure of certain business risks.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a6f45ddff207033d81536e8704501f986af3806a4f440db9ea92a84cf788a84","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed5534f2211b653fa79c2173ba92d216e937476c2ae441632940d6fa9f9779cb","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},{"block":null,"heading":"Losses Arising After the Date of the Financial Statements","paragraphs":[{"citation":"450-20-50-9","para":"50-9","html":"
Disclosure of a loss, or a loss contingency, arising after the date of an entity's financial statements but before those financial statements are issued, as described in paragraphs
450-20-25-6 through 25-7
, may be necessary to keep the financial statements from being misleading if an accrual is not required. If disclosure is deemed necessary, the financial statements shall include both of the following:
  1. a
    The nature of the loss or loss contingency
  2. b
    An estimate of the amount or range of loss or possible loss or a statement that such an estimate cannot be made.
","snippet":"Disclosure of a loss, or a loss contingency, arising after the date of an entity's financial statements but before those financial statements are issued, as described in paragraphs 450-20-25-6 through 25-7, may be necess…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:57044a6186618d58f6bf02fdc61edd15a5e65df96c88dfdfb7275c1a72263058","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},{"citation":"450-20-50-10","para":"50-10","html":"
Occasionally, in the case of a loss arising after the date of the financial statements if the amount of asset impairment or liability incurrence can be reasonably estimated, disclosure may best be made by supplementing the historical financial statements with pro forma financial data giving effect to the loss as if it had occurred at the date of the financial statements. It may be desirable to present pro forma statements, usually a balance sheet only, in columnar form on the face of the historical financial statements.
","snippet":"Occasionally, in the case of a loss arising after the date of the financial statements if the amount of asset impairment or liability incurrence can be reasonably estimated, disclosure may best be made by supplementing t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:84888c57f346f0922c4a889eed14d97aa4b78e8dce7c0942414854f903ea3510","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b4107826bec0500d84b33bf1e9de93c565cf279a26bf6562768e85ae769c8bc","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:909e7fa79607f70eb9147f87673d8ad17c4d6fb99ae50e70f106f89b007cde99","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:909e7fa79607f70eb9147f87673d8ad17c4d6fb99ae50e70f106f89b007cde99","downloaded_from":"2026-09-10T00:27:19.230Z","last_downloaded_at":"2026-09-10T00:27:19.230Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483076","source_sha256":"431261e97f6a623910c718693c14eca942df55fc02d212be5c0d0fa01551f638"}}