Add to favorites
A claim for loss recovery (e.g., an insurance claim) generally can be recognized when a loss event has occurred and recovery is considered probable. If the claim is subject to dispute or litigation, a rebuttable presumption exists that recoverability of the claim is not probable. If the potential recovery exceeds the loss recognized in the financial statements, or relates to a loss not yet recognized in the financial statements, such recovery should be recognized under the gain contingency model discussed in FSP 23.5.
ASC 450-20-S99 (SAB Topic 5.Y) includes the SEC staff's view that there is a rebuttable presumption that an asset should not be recognized for a claim for recovery from a party that asserts that it is not liable to the registrant. Registrants that overcome that presumption should disclose the amount of recorded recoveries that are being contested and discuss the reasons for concluding that the amounts are probable of recovery. Although discussed in the context of environmental liabilities, we believe these concepts are equally applicable to other non-environmental liabilities and related recoveries (e.g., asbestos claims and related insurance coverage).

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

Your session has expired

Please use the button below to sign in again.
If this problem persists please contact support.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide