What type of disclosure or accounting do you believe is necessary for the following items? a….

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, both 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 loss on a discontinued operation (net of tax) correctly 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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