Final answer:
The accrual of loss from pending or ongoing litigation is common in business accounting and financial reporting.
Step-by-step explanation:
The accrual of loss from pending or ongoing litigation can vary in frequency, but it is generally considered to be common. When a company is involved in a legal dispute, it may need to account for potential losses resulting from the litigation. These losses can include legal fees, settlement or judgment amounts, or other related costs.
For example, if a company is being sued for a breach of contract and it is likely to lose the case, it may need to accrue a loss on its financial statements to reflect the potential liability. The accrual of such losses is a normal part of accounting and financial reporting.
However, it is important to note that the actual outcome of litigation may differ from the expected outcome, and the accrual of losses may be adjusted accordingly in the future.