A loss contingency is a known situation or set of circumstances whose outcome may result in the loss of an asset or the assumption of a liability. For example, the company involved in a lawsuit with a third party for a breach of contract may result in an ultimate liability of the equivalent of Bath 250,000 determined by a court ruling or settlement of the lawsuit with the third party. If this is deemed to be the probable result, the equivalent of Baht 250,000 should be accrued once the result becomes known.