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Under US GAAP, what is the appropriate accounting treatment for a contingent gain? For example,...

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Accounting

Under US GAAP, what is the appropriate accounting treatment for a contingent gain? For example, if a company is involved in a lawsuit in which it is likely to receive a settlement, when and how should this gain be recorded in the financial statements? Explain in detail.
Discuss in detail the correct accounting treatment under US GAAP for the correction of errors made in prior years, such as a mathematical error in the depreciation of an asset. Discuss and explain the steps for recording the correction and the impact on the financial statements.
Assume that a company misapplied a non-US GAAP accounting principle in the valuation of inventories in prior years. Explain in detail, how this error should be corrected and what additional disclosures are required in the financial statements. What is the impact on the comparability of the financial statements?

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