Account Information

Account Type Income Statement
Normal Balance Debit

Definition

Legal and professional fees

Note: This account may be broken down into sub-ledgers as needed (e.g., customer/supplier/bank names or branches).

International Accounting Standards

IFRS IAS 37 Provisions, Contingent Liabilities and Assets

Legal fees expensed as incurred. Contingent legal costs require provision if probable and estimable.

US GAAP ASC 450 Contingencies

Legal costs expensed as incurred. Loss contingencies accrued when probable and reasonably estimable.