# ASC 450-20-50: Contingencies — Loss Contingencies — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/450/20/#50-disclosure) 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): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:909e7fa79607f70eb9147f87673d8ad17c4d6fb99ae50e70f106f89b007cde99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/450/20/#50-disclosure) SEC content: no #### Accruals for Loss Contingencies ##### [450-20-50-1](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:d9d758c8a1a809c1f8cf73fc1f0f9507711e1987c8a8545d79b77b1950c15a8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of the nature of an accrual made pursuant to the provisions of paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#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](https://asc.understandingaccounting.org/asc/450/20/#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](https://asc.understandingaccounting.org/asc/450/20/#450-20-55-18)) and 2, Cases A, B, and D (see paragraphs [450-20-55-23](https://asc.understandingaccounting.org/asc/450/20/#450-20-55-23), [450-20-55-27](https://asc.understandingaccounting.org/asc/450/20/#450-20-55-27), and [450-20-55-32](https://asc.understandingaccounting.org/asc/450/20/#450-20-55-32)) illustrate the application of these disclosure standards. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)Disclosure of the nature of an accrual made pursuant to the provisions of paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#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](https://asc.understandingaccounting.org/asc/450/20/#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](https://asc.understandingaccounting.org/asc/450/20/#450-20-55-18)) and 2, Cases A, B, and D (see paragraphs [450-20-55-23](https://asc.understandingaccounting.org/asc/450/20/#450-20-55-23), [450-20-55-27](https://asc.understandingaccounting.org/asc/450/20/#450-20-55-27), and [450-20-55-32](https://asc.understandingaccounting.org/asc/450/20/#450-20-55-32)) illustrate the application of these disclosure standards. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. ##### [450-20-50-2](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:b0d578bed0fcf0ec9e50c4ab1e88360be7499afd55edd0613bdecb4ad1d0fcfb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the criteria in paragraph [275-10-50-8](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-8) are met, paragraph [275-10-50-9](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-9) requires disclosure of an indication that it is at least [reasonably possible](https://asc.understandingaccounting.org/glossary/r/#reasonably-possible "The chance of the future event or events occurring is more than remote but less than likely.") that a change in an entity's estimate of its [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") liability could occur in the near term. Example 3 (see paragraph [450-20-55-36](https://asc.understandingaccounting.org/asc/450/20/#450-20-55-36)) illustrates this disclosure for an entity involved in litigation. #### Unrecognized Contingencies ##### [450-20-50-2A](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:8d0ecf373bd44cb30ef8cd0595b6d7048e253d5863eb4ebfbc70cfac7e9c90f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures required by paragraphs [450-20-50-3 through 50-6](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-3) 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](https://asc.understandingaccounting.org/asc/310/10/#310-10-50-21).) ##### [450-20-50-3](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:381f08fd1cec8fb2aa625aebcf56e2e627ca533ba438899b1bba48b92a895b29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of the [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.") 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](https://asc.understandingaccounting.org/glossary/l/#loss-contingency "An existing condition, situation, or set of circumstances involving uncertainty as to possible loss to an entity that will ultimately be resolved when one or more future events occur or fail to occur. The term loss is used for convenience to include many charges against income that are commonly referred to as expenses and others that are commonly referred to as losses.") because any of the conditions in paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#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](https://asc.understandingaccounting.org/asc/450/20/#450-20-30-1). Examples 1-3 (see paragraphs [450-20-55-18 through 55-37](https://asc.understandingaccounting.org/asc/450/20/#450-20-55-18) ) illustrate the application of these disclosure standards. ##### [450-20-50-4](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:549530268618b316bd49af914aec0d25df987c4ad6a04dcb426f5981cecf6144 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [450-20-50-5](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:2b2a44e7d8c2146d227854c31ffc7dbd1782902115b496b6f9e14310e07d9a6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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)](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2) but that is not accrued because the amount of loss cannot be reasonably estimated (the condition in paragraph [450-20-25-2(b)](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2)). Disclosure also shall be made of some loss contingencies that do not meet the condition in paragraph [450-20-25-2(a)](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-2)—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. ##### [450-20-50-6](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:db4f4c7b14a4349434636f02150fcfae721e8991baa64ca42965f5b51ae0d236 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [450-20-50-7](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:1ad18ba0f98aec8bea694015320ba223c126d4c7682f9821087d287c46ae6b55 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of noninsured or underinsured risks is not required by this Subtopic. However, disclosure in appropriate circumstances is not discouraged. ##### [450-20-50-8](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:7a6f45ddff207033d81536e8704501f986af3806a4f440db9ea92a84cf788a84 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No disclosure about general or unspecified business risks is required by this Subtopic, however, Topic 275 requires disclosure of certain business risks. #### Losses Arising After the Date of the Financial Statements ##### [450-20-50-9](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:57044a6186618d58f6bf02fdc61edd15a5e65df96c88dfdfb7275c1a72263058 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/450/20/#450-20-25-6) , 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. ##### [450-20-50-10](https://asc.understandingaccounting.org/asc/450/20/#450-20-50-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:19.230Z to 2026-09-10T00:27:19.230Z Record version: sha256:84888c57f346f0922c4a889eed14d97aa4b78e8dce7c0942414854f903ea3510 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.