(a) A loss contingency is accrued if it is probable that a
liability has been incurred at the balance sheet date and the
amount of the loss is reasonably estimable. If no accrual is made
for a loss contingency because one or both of the conditions
above are not met, disclosure of the contingency shall be made
when it is at least reasonably possible that a loss was incurred.
Therefore, this loss should be disclosed, but not accrued as a liability.