What type of disclosure or accounting do you believe is necessary for the following items? a. Because of a general increase in the number of labor disputes and strikes, within and outside the industry, there is an increased likelihood that a company will suffer a costly strike in the near future. b. A company reports a material unusual and infrequent loss on the income statement. No other mention is made of this item in the annual report. C. A company expects to recover a substantial amount in connection with a pending refund claim for a prior year's taxes. Although the claim is being contested, counsel for the company has confirmed the client's expectation of recovery.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What type of disclosure or accounting do you believe is necessary for the following items?

a. Because of a general increase in the number of labor disputes and strikes, within and outside the industry, there is an increased likelihood that a company will suffer a costly strike in the near future.

b. A company reports a material unusual and infrequent loss on the income statement. No other mention is made of this item in the annual report.

C. A company expects to recover a substantial amount in connection with a pending refund claim for a prior year's taxes. Although the claim is being contested, counsel for the company has confirmed the client's expectation of recovery. 

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