A company has a contingent loss that can be estimated and has a reasonably possible chance of occurrence. What reporting does the FASB require regarding this contingency?

a)It should be put into a memo until the actual loss materializes.

b)It should be accrued and reported on the financial statements and reported in the notes to the financial statements.

c)It should be accrued and reported on the financial statements.

d)It should be reported in the notes to the financial statements.