If a litigation-related loss is not probable,it cannot be accrued as a liability.

Name: If a litigation-related loss is not probable,it cannot be accrued as a liability.
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According to the Generally Accepted Accounting Principles (GAAP), a liability can only be accrued if it is probable that there will be an outflow of resources to settle the obligation and the amount can be reasonably estimated. Therefore, if a litigation-related loss is not probable, it cannot be accrued as a liability.

If a Litigation-Related Loss Is Not Probable,it Cannot Be Accrued