# ASC 450-30: Contingencies — Gain Contingencies Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/450/30/) 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): 2026-09-10T00:27:48.583Z to 2026-09-10T00:28:10.377Z Record version: sha256:2cf765d165bbdcef3057adc296568e6d2dffce35ff9c5fca3363a73d87c8f57c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-30: Contingencies — Gain Contingencies ### Machine-generated study aids ```json { "summary": "ASC 450-30 governs gain contingencies — existing conditions or situations involving uncertainty that may result in a future gain to the entity. The core rule is asymmetric to loss contingencies: a gain contingency usually should not be reflected in the financial statements, because doing so might recognize revenue before it is realized (450-30-25-1). Instead, adequate disclosure is required, worded carefully so as not to imply that realization is more likely than it is (450-30-50-1).", "key_points": [ "A contingency that might result in a gain usually should not be reflected in the financial statements because to do so might be to recognize revenue before its realization (450-30-25-1).", "Adequate disclosure shall be made of a gain contingency, but care shall be exercised to avoid misleading implications as to the likelihood of realization (450-30-50-1).", "The Subtopic follows the same scope and scope exceptions as the Overall Subtopic in Section 450-10-15 (450-30-15-1).", "The Contingencies Topic is not all-inclusive; Topic-specific gain contingencies are cross-referenced in Section 450-30-60, with parallel links for either-gain-or-loss uncertainties in 450-10-60 and loss uncertainties in 450-20-60 (450-30-05-2).", "Whether a receivable arising from a recognized gain contingency may be offset against an existing liability is determined under Section 210-20-45 (450-30-60-1).", "Business interruption insurance recoveries are presented and disclosed under Sections 220-30-45 and 220-30-50 (450-30-60-2, 450-30-60-3); insurance recoveries under purchased retroactive insurance contracts follow paragraph 720-20-25-3 (450-30-60-4).", "A lessor's income from variable lease payments is recognized under paragraphs 842-30-25-2, 842-30-25-9, and 842-30-25-11 (450-30-60-5)." ], "categories": [ "Recognition", "Disclosure", "Contingencies and guarantees", "Presentation" ], "audience_level": "introductory", "student_note": "Exams love the asymmetry: probable losses are accrued under 450-20, but probable gains are only disclosed — never accrued until realized. The common error is treating a likely litigation win or insurance claim as an accrued receivable, or writing a disclosure that implies recovery is assured.", "related_topics": [ "450-10", "450-20", "210-20", "220-30", "720-20", "842-30" ], "key_concepts": [ "gain contingency", "realization", "conservatism asymmetry", "adequate disclosure", "misleading implications", "insurance recoveries", "offsetting receivable against liability", "variable lease payments" ] } ``` Source downloaded (UTC): 2026-09-10T00:27:48.583Z to 2026-09-10T00:27:48.583Z Record version: sha256:2fe6f59e0df5d2437dfee15e2ffafabc687d8cff4150c0280feac8cf2a2a0712 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/450/30/#00-status) SEC content: no ##### [450-30-00-1](https://asc.understandingaccounting.org/asc/450/30/#450-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:48.583Z to 2026-09-10T00:27:48.583Z Record version: sha256:f03b36d85f881007db180b0ca814003f7f741bd891eca10b7481931f6df54400 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
Commencement Date of the Lease (Commencement Date)AddedAccounting Standards Update No. 2016-0202/25/2016
ContractAddedAccounting Standards Update No. 2016-0202/25/2016
Direct Financing LeaseAmendedAccounting Standards Update No. 2021-0507/19/2021
Direct Financing LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Finance LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
LesseeAddedAccounting Standards Update No. 2016-0202/25/2016
LessorAddedAccounting Standards Update No. 2016-0202/25/2016
Operating LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Sales-Type LeaseAmendedAccounting Standards Update No. 2021-0507/19/2021
Sales-Type LeaseAddedAccounting Standards Update No. 2016-0202/25/2016
Underlying AssetAddedAccounting Standards Update No. 2016-0202/25/2016
Variable Lease PaymentsAddedAccounting Standards Update No. 2016-0202/25/2016
450-30-60-5AmendedAccounting Standards Update No. 2016-0202/25/2016
Source downloaded (UTC): 2026-09-10T00:27:52.539Z to 2026-09-10T00:27:52.539Z Record version: sha256:826d22e45feed7e4e2e452fab537e2a144bd6d800923ba540a2094608d9ab2bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/450/30/#05-overview-and-background) SEC content: no ##### [450-30-05-1](https://asc.understandingaccounting.org/asc/450/30/#450-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:52.539Z to 2026-09-10T00:27:52.539Z Record version: sha256:fb2b08a8b51fa19a8dda4e6e90840ac62f456df3b1fdaf9d26d9add13d9ded1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for the recognition and disclosure of a [gain contingency](https://asc.understandingaccounting.org/glossary/g/#gain-contingency "An existing condition, situation, or set of circumstances involving uncertainty as to possible gain to an entity that will ultimately be resolved when one or more future events occur or fail to occur."). ##### [450-30-05-2](https://asc.understandingaccounting.org/asc/450/30/#450-30-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:52.539Z to 2026-09-10T00:27:52.539Z Record version: sha256:22d27c65410ce39bdf3e68df4c89d3a4f2d00fa1ee4daea4077e32fcd7249468 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic, in combination with Subtopics 450-10 and 450-20, provides general guidance regarding gain and [loss contingencies](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."). 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. Source downloaded (UTC): 2026-09-10T00:27:55.964Z to 2026-09-10T00:27:55.964Z Record version: sha256:39029e37411b4b70abe94f45de4a9afb13851c773da0d6b3bf64fb6b979ed45f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/450/30/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [450-30-15-1](https://asc.understandingaccounting.org/asc/450/30/#450-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:27:55.964Z to 2026-09-10T00:27:55.964Z Record version: sha256:6c1713c0bc39f249531f3cb29d626dc5d1dbd97f1f9ec57bd412c017e79674c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 450-10-15. Source downloaded (UTC): 2026-09-10T00:28:02.205Z to 2026-09-10T00:28:02.205Z Record version: sha256:4d37f0ca81d467ac67f79eaab9c7ffef1c6c485a60fb86efcc2f2bc6ae2d3a22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-30-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/450/30/#25-recognition) SEC content: no ##### [450-30-25-1](https://asc.understandingaccounting.org/asc/450/30/#450-30-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:02.205Z to 2026-09-10T00:28:02.205Z Record version: sha256:c68fdf1f9e1f23467c52af19b461dd44bc7898806ad0dd7ab7da13718e2e2d75 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A contingency that might result in a gain usually should not be reflected in the financial statements because to do so might be to recognize revenue before its realization. Source downloaded (UTC): 2026-09-10T00:28:04.439Z to 2026-09-10T00:28:04.439Z Record version: sha256:8fa30498a711add719e50ed3d026ed37463c4ead3e6374a4ef9e03803ac1c84f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/450/30/#50-disclosure) SEC content: no ##### [450-30-50-1](https://asc.understandingaccounting.org/asc/450/30/#450-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:04.439Z to 2026-09-10T00:28:04.439Z Record version: sha256:987a2f5cf8f4147a77ddd074431057a32e68c680dcb88f9108c466c518a27d56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Adequate disclosure shall be made of a contingency that might result in a gain, but care shall be exercised to avoid misleading implications as to the likelihood of realization. Source downloaded (UTC): 2026-09-10T00:28:08.097Z to 2026-09-10T00:28:08.097Z Record version: sha256:6d9089c89fa28a796e29c3bdef66ebaae530eaa181aa108aa6ce72c19b458b53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 450-30-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/450/30/#60-relationships) SEC content: no #### Balance Sheet ##### [450-30-60-1](https://asc.understandingaccounting.org/asc/450/30/#450-30-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:08.097Z to 2026-09-10T00:28:08.097Z Record version: sha256:2ad3163944be2f20ba02e2ee8393385294e8dc2ab19546ef34b1adff7a06bde1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the determination of whether a receivable resulting from the recognition of a [gain contingency](https://asc.understandingaccounting.org/glossary/g/#gain-contingency "An existing condition, situation, or set of circumstances involving uncertainty as to possible gain to an entity that will ultimately be resolved when one or more future events occur or fail to occur.") may be offset against an existing liability, see Section 210-20-45. #### Income Statement ##### [450-30-60-2](https://asc.understandingaccounting.org/asc/450/30/#450-30-60-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:08.097Z to 2026-09-10T00:28:08.097Z Record version: sha256:64f00d96212f301d5df5e8bf18e134bc8b8a12bc7fe6b9505947ece706beb326 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the presentation of business interruption insurance recoveries in the income statement, see Section 220-30-45. ##### [450-30-60-3](https://asc.understandingaccounting.org/asc/450/30/#450-30-60-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:08.097Z to 2026-09-10T00:28:08.097Z Record version: sha256:5ad61ca841d5ddcf7c66cdc6172961766e7020ff112ef13d43eea4344e511789 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For disclosure of information about business interruption insurance recoveries, see Section 220-30-50. #### Other Expenses ##### [450-30-60-4](https://asc.understandingaccounting.org/asc/450/30/#450-30-60-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:08.097Z to 2026-09-10T00:28:08.097Z Record version: sha256:f9424b9672e2923c07052078988d50a7c20f8c27f34ea619357a3d111bc283e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For recognition of insurance recoveries by an entity insured through a purchased retroactive insurance contract (other than for core insurance operations of an insurance entity), see paragraph [720-20-25-3](https://asc.understandingaccounting.org/asc/720/20/#720-20-25-3). #### Leases ##### [450-30-60-5](https://asc.understandingaccounting.org/asc/450/30/#450-30-60-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:28:08.097Z to 2026-09-10T00:28:08.097Z Record version: sha256:0a69b834ee73b24f46ad3c33f564e45bbc4bc0489c61e34218607c669c185616 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a lessor's accounting for income from [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 [842-30-25-2](https://asc.understandingaccounting.org/asc/842/30/#842-30-25-2) (for [sales-type leases](https://asc.understandingaccounting.org/glossary/s/#sales-type-lease "From the perspective of a lessor, a lease that meets one or more of the criteria in paragraph 842-10-25-2 and is not an operating lease in accordance with paragraph 842-10-25-3A.")), [842-30-25-9](https://asc.understandingaccounting.org/asc/842/30/#842-30-25-9) (for [direct financing leases](https://asc.understandingaccounting.org/glossary/d/#direct-financing-lease "From the perspective of a lessor, a lease that meets none of the criteria in paragraph 842-10-25-2 but meets the criteria in paragraph 842-10-25-3(b)and is not an operating lease in accordance with paragraph 842-10-25-3A.")), and [842-30-25-11](https://asc.understandingaccounting.org/asc/842/30/#842-30-25-11) (for [operating leases](https://asc.understandingaccounting.org/glossary/o/#operating-lease "From the perspective of a lessee, any lease other than a finance lease. From the perspective of a lessor, any lease other than a sales-type lease or a direct financing lease.")).