Is the requirement cited in Question 9 of SAB 101 for “reliable” estimates meant to imply a new, higher requirement than the “reasonable” estimates discussed in SFAS No. 48?
No. “Reliability” of financial information is one of the qualities of accounting information discussed in SFAC No. 2. The staff’s expectation that estimates be reliable does not change the existing requirement of SFAS No. 48. If management cannot develop an estimate that is sufficiently reliable for use by investors, the staff believes it cannot make a reasonable estimate meeting the requirements of that standard.
