FASB 5/14

Existing condition involving uncertainty as to possible gain or loss to an enterprise that will utlimately be resolved when one or more future events occur or fail to occur

• Probable: future event likely to occur
• Reasonably possible: more than remote but less than likely
• Remote: chances of future event occuring is slight

• Info available prior to issuance of financial statements indicates that it is probable that an asset has been impaired or a liability incurred
• Amt of the contigency can be reasonably estimable

• When some amt amt is better, that amt is accrued
• When no amt is better, the minimum amt is accrued