A Company's Main Inventory Warehouse Burned Down a Few Days

Multiple Choice

A company's main inventory warehouse burned down a few days after the company's fiscal year end - well before the financial statements for the last year were issued. The company's insurer will only cover a portion of the estimated losses. Given this event, what should the company do from an accounting/financial reporting standpoint?

A) Will not disclose the event and the estimated amount of the loss in a note to the financial statements.
B) No action is required.
C) Both disclose the event and the estimated amount of the loss in a note to the financial statements and accrue for the estimated amount of the loss.
D) Disclose the event as part of management's M, D & A (Management Discussion and Analysis) .