range of loss

Liabilities1

1. 450-20Loss Contingencies450 Contingencies

   ASC 450-20 governs when a loss contingency must be accrued as a charge to income and when it must instead be disclosed. A loss is accrued only if, based on information available before the financial statements are issued, it is probable that an asset was impaired or a liability incurred at the balance sheet date and the amount of loss is reasonably estimable (450-20-25-2). If the estimate is a range, the best estimate in the range is accrued, or the minimum of the range if no amount is better than any other (450-20-30-1); if accrual criteria are not met but a loss is at least reasonably possible, disclosure of the nature of the contingency and an estimate of possible loss (or a statement that none can be made) is required (450-20-50-3 through 50-4).