Even if a claim has yet to be made when the financial statements are issued, a contingency may warrant accrual or disclosure. In this case, a two-step process is involved in deciding how the unasserted claim should be reported: is it probable that a claim will be asserted? if the answer is no, stop. no accrual/disclosure is necessary. if yes, go to step 2 treat the claim as if the claim has been asserted. that requires evaluating (a) the likelihood of an unfavorable outcome and (b) whether the dollar amount of loss can be estimated, just as we already have discussed for other loss contingencies for which a claim has already been asserted