The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required:

Question:

The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles.

Required:
1. Obtain the relevant authoritative literature on recognition of contingent losses using the FASB’s Codification Research System at the FASB website (www.fasb.org). What is the specific citation that describes the guidelines for determining when an expense and liability should be accrued for a contingent loss?
2. List the guidelines.