Problem
A company is preparing interim financial statements for the second quarter ended June 30, 20X0. The company's fiscal year-end is December 31. The company has been informed of the potential of a lawsuit to be filed against the company related to a price disagreement on a recently completed contract. The company's chief financial officer is wondering what obligation the company has in reporting the contingency on the June 30th interim financial statements. What guidance is available in the Codification? (Use the following ASC citation format: ASC 000-00-00-00. Make sure to include "ASC" in your citation.)