This course offers an overview of the accounting and financial reporting obligations related to litigation. It covers the classification of litigation outcomes as probable, reasonably possible, or remote, along with guidance on evaluating, recognizing, measuring, and disclosing litigation-related contingencies.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify when to accrue a liability for litigation-related contingencies under ASC 450-20
Differentiate between probable, reasonably possible, and remote litigation outcomes
Recognize the role of legal counsel in the litigation process
Identify the appropriate financial statement disclosures for litigation-related contingencies
Major Topics
The Impact of Litigation on Financial Statements
Types of Legal Disputes
Why Accurate Evaluation Matters
Relevant U.S. GAAP Standards
Probability of Litigation Outcomes
Evaluating the Probability of Litigation Outcomes
Function of Legal Counsel
Asserted vs. Unasserted Claims
Recognition and Measurement of Legal Contingencies
Gain Contingencies
Financial Statement Disclosures
