can you help me explain this part use your own words?

sy w KUP U Intial slavement for being misleading 1 an accrual 18 not required. If disclosure is deemed necessary, the financial statements shall include both of the following: a. The nature of the loss or loss contingency b. An estimate of the amount or range of loss or possible loss or a state- ment that such an estimate cannot be made. 450-20-50-10. Occasionally, in the case of a loss arising after the date of the financial statements if the amount of asset impairment or liability incurrence can be reasonably estimated, disclosure may best be made by supplementing the historical financial statements with pro forma financial data giving effect to the loss as if it had occurred at the date of the financial statements. It may be desirable to present pro forma statements, usually a balance sheet only, in columnar form on the face of the historical financial statements, Implementation Guidance and illustrations General Implementation Guidance Litigation, Claims, and Assessments 450-20-55-10. The following factors should be considered in determining whether accrual and/or disclosure is required with respect to pending or threat- ened litigation and actual or possible claims and assessments: that in the cause for action)