This question is regarding the disclosure in connection with contingent liabilities.

Under U.S.GAAP, we record contingent liabilities based on the probability. There are roughly 3 types, which are "Probable", "Reasonably possible", and "Remote".

Under Probable, there are 4 cases: 1. Reasonably estimated and specifiable 2. Reasonably estimated but not specifiable but there is a better estimate 3. Reasonably estimated but not specifiable and there is no better estimate 4. Not reasonably estimated. Regarding 1-3, we record loss on IS accordingly.

The question is:

Regarding #1, we also disclose the possible maximum amount as well in the notes.

Regarding #2 and 3, we also disclose the range of the amount as well in the notes.

Regarding #4, we disclose the nature of the contingency and the fact that amount is not estimable in the notes.

Am I understanding correctly so far? Regarding #1,2 &3, do we not need to disclose the nature of the contingency like #4?

Regarding "Reasonably possible," what exactly do we need to disclose? Do we disclose the nature of the contingency and the fact that it is reasonably possible?