SFAS (Statement of Financial Accounting Standards) 5 defines probable events are those "more likely than not" to occur, suggesting that a probability of more than 50% requires recognition of a loss. However, in practice, firms generally report contingencies as losses only when the probability of loss is significantly higher.

Translation: Firms generally report contingencies as losses when irrefutable evidence of a loss has made its way into the public domain and can no longer be obfuscated by contrary pronouncements and obsfuscation -- if then.

"It is not necessary to have hope in order to persevere."