When a company can estimate a range for the loss, but cannot identify a single most-likely outcome within that range, IFRS requires that it accrue the midpoint of the range while U.S. GAAP requires that it accrue the minimum value of the range.

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Under IFRS, when no specific point within a range is more likely, the midpoint is used. Under U.S. GAAP, the minimum amount in the range is accrued if no amount within the range is a better estimate than any other amount.

When a Company Can Estimate a Range for the Loss