What percentage is reasonably possible?

In a survey of accountants average values and ranges for the three terms were: probable, average 70 percent, range 4080 percent; reasonably possible, 60 percent, range 4080 percent; remote: 10 percent, range 025 percent (Boritz, 1990 p. 24).

What does reasonably possible mean?

Reasonably possible – The chance of the future event or events occurring is more than remote but less than likely.

How should a loss contingency that is reasonably possible and for which the amount can be reasonably estimated be reported?

Due to conservative accounting principles, loss contingencies are reported on the balance sheet and footnotes on the financial statements, if they are probable and their quantity can be reasonably estimated. They do not have to be realized in order to report them on the balance sheet.

What is ASC Topic 450?

ASC 450, Contingencies, outlines the accounting and disclosure requirements for loss and gain contingencies. The Codification also provides certain industry-specific contingency guidance, but such guidance is included in the industry sections of the Codification.

What does reasonably possible mean in accounting?

“Reasonably possible” means that the chance of the event occurring is more than remote but less than likely. No treatment. Do not record or disclose a contingent liability if the probability of its occurrence is remote.

What is probable in IFRS?

Probable in this context means ‘likely to occur’, which is a higher threshold than IFRS. In many cases, this difference will not change the practical outcome and the threshold will be met under both frameworks. Like IFRS the amount can be estimated reasonably.

What is reasonably likely in statistics?

Reasonably likely . Means a meaningful chance (but not necessarily a probability) of occurring.

What does as soon as reasonably possible mean?

Related Definitions As soon as reasonably possible means immediately after use, serving, or consuming the contents thereof, provided, however, that in all events empty bottles shall be immediately segregated from existing usable inventory. Sample 1.

How should a contingent liability that is reasonably possible?

How should a contingent liability be reported in the financial statements when it is reasonably possible?

If a loss is reasonably possible, you would add a note about it to the company’s financial statements. On the other hand, if a loss becomes probable and can be reasonably estimated, your company would report a contingent liability on the balance sheet and a loss on the income statement.