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A recently issued demographic report indicates that there is a reasonable probability that Lambert's business may be adversely impacted in the future. The company's controller

A recently issued demographic report indicates that there is a reasonable probability that Lambert's business may be adversely impacted in the future. The company's controller wants to begin accruing a general contingency reserve now for unspecified business contingencies, such as the potential decline in business that may occur in the future. Find authoritative guidance as to whether or not such an accrual is allowed under GAAP. Please explain whether or not such an accrual is allowed.

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