Extract to table

Applicable Accounting Standards The litigation reserve analysis for the DOJ investigation must be conducted under two applicable financial-reporting frameworks, as TMC reports its financial results under both U

The consequence of this divergence is that a contingency may require provision recognition under IAS 37 before it requires accrual under ASC 450, and TMC's financial reporting team must manage this difference in the preparation of its dual-GAAP financial statements

Accordingly, both accounting standards are satisfied, and TMC is required to recognize a provision (under IAS 37) and an accrual (under ASC 450) for the estimated loss arising from the DOJ investigation

However, the ASC 450 range is not limited to the "realistic penalty range" — it must encompass the full range of reasonably possible outcomes, including outcomes that, while less likely, are within the realm of reasonable possibility