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Reasonably Possible Likelihood of Loss implies that the chance of the future event or events occurring is more than remote but less than probable. If it is reasonably possible that the federal entity will incur a loss, the entity must disclose the nature of the contingency and an estimate of the possible liability, an estimate of the range of the possible liability, or a statement that such an estimate cannot be made (see Statement of Federal Financial Accounting Standards Nos. 5 and 12).