Question
What role does legal counsel play in litigation contingency accounting?
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Answer
Counsel helps assess outcome likelihood and estimate the loss.
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Question
Why can a guarantee require a liability even when default is remote?
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Answer
ASC 460 measures the stand-ready obligation at fair value.
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Question
What additional disclosure is required for many guarantees under ASC 460?
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Answer
Nature, maximum potential payment, and recourse.
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Question
When are environmental remediation liabilities accrued?
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Answer
When probable and reasonably estimable.
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