Q20

An estimated loss from a loss contingency should be accrued when

		It is probable at the date of the financial statements that a loss has been incurred and the amount of the loss can be reasonably estimated
		The loss has been incurred by the date of the financial statements and the amount of the loss may be material
		It is probable at the date of the financial statements that a loss has been incurred and the amount of the loss may be material
		It is probable that a loss will be incurred in a future period and the amount of the loss can be reasonably estimated