Many fi rms believe that it is very diffi cult to estimate the amount of a possible future contingency. Should a contingent liability be reported even when the dollar amount of the loss is not known?...

Many fi rms believe that it is very diffi cult to estimate the amount of a possible future contingency. Should a contingent liability be reported even when the dollar amount of the loss is not known? Should it be disclosed in the notes to fi nancial statements?