Navigating Accounting for Litigation and Legal Contingencies
This comprehensive course provides participants with the essential knowledge and tools to effectively account for and report litigation-related contingencies. Legal disputes, ranging from contract breaches and product liabilities to employment claims and regulatory investigations, can introduce significant financial uncertainty for organizations. This course guides professionals through the complexities of evaluating and categorizing these risks in accordance with U.S. GAAP, particularly ASC 450-20.
Participants will learn to distinguish between probable, reasonably possible, and remote outcomes, determine the conditions under which liabilities should be accrued, and accurately measure potential financial impacts. The course emphasizes the importance of collaborating with legal counsel to assess the strength of cases, evaluate settlement possibilities, and understand the implications of jurisdiction and legal precedents. It also explores best practices for disclosing legal contingencies to stakeholders to ensure financial transparency and compliance.
Through practical examples and real-world scenarios, attendees will gain insights into the role of subsequent events, strategies for managing gain contingencies, and the critical importance of accurate financial reporting. By the end of this course, participants will be equipped to navigate the challenges of litigation accounting and maintain the integrity of their organization’s financial statements.
Kelen is a recognized author and reviewer of CPE courses and has authored nearly 160 courses (380+ CPE credit hours) covering a range of accounting, auditing, financial reporting, regulatory, and ethics topics. His courses are available for purchase from many online CPE providers including the AICPA. Kelen remained involved in CPA exam content development for nearly 10 years and authored more than a thousand multiple choice questions for various sections of the CPA exam. He also serves as an Editorial Advisor for the AICPA’s "Journal of Accountancy". Kelen has nearly 20 years of progressive finance and accounting experience. He currently serves as a Principal in Accounting Policy with HP in Doha, Qatar, and previously served in positions in Houston, Dallas, and Budapest, Hungary. Prior to HP, he served in multiple accounting roles in the oil & gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors.
