Accounting for Litigation and Legal Contingencies
Author: Kelen Camehl
| CPE Credit: |
2 hours for CPAs |
This course provides an overview of the accounting and financial reporting requirements with respect to litigation. This includes distinguishing between probable, reasonably possible, and remote litigation outcomes as well as how to evaluate, recognize, measure, and disclose litigation-related contingencies.
Publication Date: March 2025
Topics Covered
- Types of Legal Disputes
- Importance of Accurate Evaluation
- Applicable U.S. GAAP Guidance
- Likelihood of Litigation Outcomes
- Assessing the Likelihood of Litigation Outcomes
- Role of Legal Counsel
- Asserted vs. Unasserted Claims
- Recognition and Measurement of Legal Contingencies
- Gain Contingencies
- Financial Statement Disclosures
Learning Objectives
- Identify how to differentiate between probable, reasonably possible, and remote litigation outcomes
- Identify when to accrue a liability for litigation-related contingencies under ASC 450-20
- Recognize the role of legal counsel in the litigation process
- Identify the appropriate financial statement disclosures for litigation-related contingencies
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
