Loss Contingency Accrual: Importance and Guidelines

A Loss Contingency Should be Accrued on a Company's Records Only if It Is

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A loss contingency should be accrued on a company's records only if it is

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E

Loss contingencies should be accrued when information available prior to the issuance of financial statements indicates that it is probable that an asset has been impaired or a liability has been incurred, and the amount of the loss can be reasonably estimated.