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While a numeric standard for probable does not exist, practice generally considers an event that has a 75% or greater likelihood of occurrence to be probable. A provision must be probable to be recognized. Probable is interpreted as more likely than not (i.e., a probability of greater than 50 percent).

With respect to disclosures, ASC 450 requires the entity to disclose the nature of the unasserted claim or loss contingency, and either an estimate of the possible loss, a range of the possible loss, or a statement that such an estimate cannot be made, be disclosed.

There are generally two types of subsequent events. 1)The first is a recognized event whereas the second is a non-recognized event. Recognized or type 1 subsequent events are typically events that occurred at the financial statement date.

Background: General disclosure guidance in FASB Accounting Standards Codification® (ASC) Topic 275, Risks and Uncertainties, requires a nongovernmental entity to disclose risks and uncertainties relating to the nature of its operations, its estimates, and vulnerability due to certain concentrations.

FASB Accounting Standards Codification (ASC) Topic 450, Contingencies, requires companies to assess the degree of probability of an unfavorable outcome before reporting a loss contingency.

The likelihood of the loss occurring falls under three thresholds: “probable,” “reasonably possible,” or “remote.” While FASB ASC 450 does not provide qualitative thresholds for each of these classifications, in practice it is often acceptable to consider probable as over 70%-75%, remote as under 10%, and reasonably ...

ASC 450 provides that an estimated loss from a loss contingency must be accrued as a charge to income if both of the following conditions are met: Information indicates that it is probable that an asset had been impaired, or a liability had been incurred at the date of the financial statements.

A loss contingency should be accrued if it is both (1) probable and (2) reasonably estimable. ASC 450-20-20 defines “probable” as “the future event or events are likely to occur,” which is generally considered a 75% threshold.

While a numeric standard for probable does not exist, practice generally considers an event that has a 75% or greater likelihood of occurrence to be probable. A provision must be probable to be recognized. Probable is interpreted as more likely than not (i.e., a probability of greater than 50 percent).

With respect to disclosures, ASC 450 requires the entity to disclose the nature of the unasserted claim or loss contingency, and either an estimate of the possible loss, a range of the possible loss, or a statement that such an estimate cannot be made, be disclosed.

There are generally two types of subsequent events. 1)The first is a recognized event whereas the second is a non-recognized event. Recognized or type 1 subsequent events are typically events that occurred at the financial statement date.

Background: General disclosure guidance in FASB Accounting Standards Codification® (ASC) Topic 275, Risks and Uncertainties, requires a nongovernmental entity to disclose risks and uncertainties relating to the nature of its operations, its estimates, and vulnerability due to certain concentrations.

FASB Accounting Standards Codification (ASC) Topic 450, Contingencies, requires companies to assess the degree of probability of an unfavorable outcome before reporting a loss contingency.

The likelihood of the loss occurring falls under three thresholds: “probable,” “reasonably possible,” or “remote.” While FASB ASC 450 does not provide qualitative thresholds for each of these classifications, in practice it is often acceptable to consider probable as over 70%-75%, remote as under 10%, and reasonably ...

ASC 450 provides that an estimated loss from a loss contingency must be accrued as a charge to income if both of the following conditions are met: Information indicates that it is probable that an asset had been impaired, or a liability had been incurred at the date of the financial statements.

A loss contingency should be accrued if it is both (1) probable and (2) reasonably estimable. ASC 450-20-20 defines “probable” as “the future event or events are likely to occur,” which is generally considered a 75% threshold.