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Typical gain contingencies include tax loss carryforwards, probable favorable outcome in pending litigation, and possible refunds from the government in tax disputes.

There is a paragraph setting out the order in which notes to the financial statements are normally presented: this begins with a statement of compliance, then a summary of significant accounting policies, supporting information for individual line items following their sequence in the primary statements, and finally ' ...

Contingent liabilities are recorded if the contingency is likely and the amount of the liability can be reasonably estimated. The liability may be disclosed in a footnote on the financial statements unless both conditions are not met.

Gain contingencies are suspected to result in a positive outcome. U.S. GAAP takes a conservative approach to recording gain contingencies. Gain contingencies will never be recorded (accrued), however, if they are reasonably likely to occur, they should be reported in the notes to the financial statements.

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. A realized gain is one where cash (or other assets, such as claims to cash) has been received without expectation of repayment.

If the recognition criteria for a contingent liability are met, entities should accrue an estimated loss with a charge to income. If the amount of the loss is a range, the amount that appears to be a better estimate within that range should be accrued.

Though ASC 450 does not require disclosure of remote contingencies, ASC 460 requires certain remote loss contingencies to be disclosed.