C is corrent because ASC Topic 450 requires accrual of a loss contingency only if both of the following conditions are met: (1) the future losses are probable and (2) the loss amount can be reasonably estimated. Loss contingencies that do not meet one or both of these criteria, but that are at least reasonably possible should be disclosed, but not accrued. Loss contingencies that have only a remote possibility of occurrence are generally not even disclosed.
A is incorrect. ASC Topic 450 requires accrual of a loss contingency only if both of the following conditions are met: (1) the future losses are probable and (2) the loss amount can be reasonably estimated.
B is incorrect. ASC Topic 450 requires accrual of a loss contingency only if both of the following conditions are met: (1) the future losses are probable and (2) the loss amount can be reasonably estimated.
D is incorrect. ASC Topic 450 requires accrual of a loss contingency only if both of the following conditions are met: (1) the future losses are probable and (2) the loss amount can be reasonably estimated.
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