SimplyCPA
Quick Sheets/FAR/Current Liabilities, Contingencies & Commitments

FAR — Quick Sheet

Current Liabilities, Contingencies & Commitments

Read time: ~5 minutes

One-minute revision

  • Probable + estimable → accrue
  • Probable but not estimable, or reasonably possible → disclose only
  • Remote → nothing
  • Range with no best estimate → accrue the minimum
  • Gain contingencies: never accrue before realized
  • Assurance warranty → accrue at sale; service-type warranty → separate performance obligation, revenue over time