{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/450/980/#25-recognition","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":"450-980","subtopic_title":"Regulated Operations","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"450-980-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_4692860C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraph <a href=\"/asc/450/20/#450-20-25-2\" class=\"xref\">450-20-25-2</a> specifies criteria for recording estimated losses from loss contingencies. A regulator may direct a regulated entity to include an amount for a contingency in <a href=\"/glossary/a/#allowable-costs\" class=\"term\" title=\"All costs for which revenue is intended to provide recovery. Those costs can be actual or estimated. In that context, allowable costs include interest cost and amounts provided for earnings on shareholders' investments.\"><span>allowable costs</span></a> for rate-making purposes even though the amount does not meet those criteria for recording. </span></span><span class=\"sfragment\" id=\"sfr_4692876B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the regulator requires the entity to remain accountable for any amounts charged pursuant to such rates and not yet expended for the intended purpose, the resulting increased charges to customers create a liability (see paragraph <a href=\"/asc/405/980/#405-980-25-1\" class=\"xref\">980-405-25-1(b)</a>). </span></span></div></div>","snippet":"Paragraph 450-20-25-2 specifies criteria for recording estimated losses from loss contingencies. A regulator may direct a regulated entity to include an amount for a contingency in allowable costs for rate-making purpose…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f12000a03a42b1759ca9d0f95026570d53fa06dbf993be3cf62db42c146dd6c1","downloaded_from":"2026-09-10T00:29:23.763Z","last_downloaded_at":"2026-09-10T00:29:23.763Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478044","source_sha256":"7fbb3d97fcff65b0f338435b71069166c4dd349818b91ce88517b55a1caa8e27"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ea422fc4ceeb8bc68b798d7901a9c590fab8696f65db49b97236a58593506ae","downloaded_from":"2026-09-10T00:29:23.763Z","last_downloaded_at":"2026-09-10T00:29:23.763Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478044","source_sha256":"7fbb3d97fcff65b0f338435b71069166c4dd349818b91ce88517b55a1caa8e27"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c7842b423f8ae931038f0207101ec7c25fef201827208bfab6727f4e8543b59b","downloaded_from":"2026-09-10T00:29:23.763Z","last_downloaded_at":"2026-09-10T00:29:23.763Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478044","source_sha256":"7fbb3d97fcff65b0f338435b71069166c4dd349818b91ce88517b55a1caa8e27"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c7842b423f8ae931038f0207101ec7c25fef201827208bfab6727f4e8543b59b","downloaded_from":"2026-09-10T00:29:23.763Z","last_downloaded_at":"2026-09-10T00:29:23.763Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478044","source_sha256":"7fbb3d97fcff65b0f338435b71069166c4dd349818b91ce88517b55a1caa8e27"}}