When does and incurred loss occur?

Answer 1

An incurred loss occurs when a plaintiff believes that the actions of another person known as the defendant is responsible for causing them a loss or damage of property.

Answer 2

An incurred loss occurs when there is objective evidence that a loss event has occurred before the financial statements are issued and the amount of the loss can be reasonably estimated. In other words, it happens when a company has experienced a loss or is aware of the likelihood of a loss and can reasonably estimate the amount of that loss.