Contingency Range Accrual Policy Consistency Checker
Check a recorded contingency accrual against a supplied estimate range and an explicitly applicable policy minimum.
Description
A contingency accrual can be checked against both an estimate range and an explicitly applicable policy minimum.
A contingency accrual can be checked against both an estimate range and an explicitly applicable policy minimum. These outputs are independent.1
The returned values include Estimate range, Meets policy minimum, Recorded accrual, Within estimate range. The How section below explains the calculation, input rules and interpretation.
When to use Contingency Range Accrual Policy Consistency Checker
Use Contingency Range Accrual Policy Consistency Checker when you need to evaluate the supplied records under the calculation and evidence rules below. No recognition probability, best estimate, applicable accounting framework or legal conclusion is supplied.
Prepare source-backed observations and the applicable engagement policy before entering facts. Use consistent monetary units and periods. Supply all boolean evidence flags explicitly, and treat a successful screen as a reason to continue professional review.
How to use Contingency Range Accrual Policy Consistency Checker and understand its results
- Prepare source-backed observations and the applicable engagement policy before entering facts. Use consistent monetary units and periods. Supply all boolean evidence flags explicitly, and treat a successful screen as a reason to continue professional review.
- Enter highEstimate, lowEstimate, policyMinimum, recordedAmount, requiresPolicyMinimum using the field table and calculation rules, then run the tool.
- Read estimateRange, meetsPolicyMinimum, recordedAmount, withinEstimateRange. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| highEstimate | High estimate | number; minimum: 0 | Required |
| lowEstimate | Low estimate | number; minimum: 0 | Required |
| policyMinimum | Policy minimum | number; minimum: 0 | Required |
| recordedAmount | Recorded accrual | number; minimum: 0 | Required |
| requiresPolicyMinimum | Policy minimum applies | boolean | Required |
Require finite nonnegative estimates/policy/recorded, low≤high and applicability boolean. Return high−low range width, unchanged recorded amount and both inclusive flags. Policy minimum need not lie within the estimate range.
within=low≤recorded≤high; minimumMet=not required OR recorded≥policyMinimum Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| estimateRange | Estimate range | number; minimum: 0 |
| meetsPolicyMinimum | Meets policy minimum | boolean |
| recordedAmount | Recorded accrual | number; minimum: 0 |
| withinEstimateRange | Within estimate range | boolean |
{
"input": {
"highEstimate": 500000,
"lowEstimate": 300000,
"policyMinimum": 400000,
"recordedAmount": 350000,
"requiresPolicyMinimum": true
},
"output": {
"estimateRange": 200000,
"meetsPolicyMinimum": false,
"recordedAmount": 350000,
"withinEstimateRange": true
}
}Limitations and assumptions
No recognition probability, best estimate, applicable accounting framework or legal conclusion is supplied.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing fields without a declared default, extra fields, wrong value types and violations of the calculation rules are input errors. A successfully returned false flag is an evaluated outcome; its meaning is explained above.
Alternative or Complementary methods
Use Legal Letter Attorney Litigation Response Scope Lookup: A legal response needs coverage of requested matters and a timing comparison. Missing coverage and late timing are separate output facts. For a complementary task, use Impairment Loss Recoverability One Step Test Tool: A one-step impairment scenario compares carrying value with the higher of two independently measured recovery values. An undiscounted-cash screening gate is absent.
References
Similar or alternative tools
- Legal Letter Attorney Litigation Response Scope Lookup
A legal response needs coverage of requested matters and a timing comparison. Missing coverage and late timing are separate output facts.
- Impairment Loss Recoverability One Step Test Tool
A one-step impairment scenario compares carrying value with the higher of two independently measured recovery values. An undiscounted-cash screening gate is absent.