C is corrent because per ASC Topic 450, an estimated loss from contingencies shall be accrued and charged to income when it is probable that an asset has been impaired or a liability incurred and when the amount of the loss can be reasonably estimated. Both of these requirements are met by the expropriation of assets described in this question. Therefore, this loss contingency should be accrued. Additionally, the nature of the contingency should be disclosed in a note to the financial statements.
A is incorrect. Per ASC Topic 450, an estimated loss from contingencies shall be accrued and charged to income when it is probable that an asset has been impaired or a liability incurred and when the amount of the loss can be reasonably estimated.
B is incorrect. Per ASC Topic 450, an estimated loss from contingencies shall be accrued and charged to income when it is probable that an asset has been impaired or a liability incurred and when the amount of the loss can be reasonably estimated.
D is incorrect. Per ASC Topic 450, an estimated loss from contingencies shall be accrued and charged to income when it is probable that an asset has been impaired or a liability incurred and when the amount of the loss can be reasonably estimated.
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