Current Liability & Contingencies

Chapter 13 covers how companies measure, classify, and report current liabilities (accounts and notes payable, accrued and employee-related liabilities, advance collections, dividends, current maturities, and refinanced or callable debt). It then covers contingencies: gain contingencies are never accrued, while loss contingencies are accrued or disclosed depending on how likely the loss is and how well it can be estimated. It finishes with warranties, extended warranties, and litigation. Material the notes greyed out (FUTA, the reasons litigation is rarely accrued, unfiled claims, rebates/coupons/premiums, and asset retirement obligations) is excluded.