For a loss contingency to be accrued, the claim must have been made before the accounting period ended.

Question

Quizplus · Accepted Answer

For a loss contingency to be accrued, the claim does not necessarily have to have been made before the accounting period ended. It only needs to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. However, if the claim has not been made by the end of the accounting period, disclosure of a potential loss contingency may be required in the financial statements.

For a Loss Contingency to Be Accrued, the Claim Must