Legal Fees
Code: 5213
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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.