$450-20-25-2$

An estimated loss from a loss contingency shall be accrued by a charge to income if both of the following conditions are met:

a

Information available before the financial statements are issued or are available to be issued $($as discussed in Section $855-10-25)$ indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statements. Date of the financial statements means the end of the most recent accounting period for which financial statements are being presented. It is implicit in this condition that it must be probable that one or more future events will occur confirming the fact of the loss.

b

The amount of loss can be reasonably estimated.