1. A client suffered a serious accident at a company in November 2020. As of the date of publication of the 2020 financial statements, a claim had NOT been filed against the company. The company's legal advisor estimates that it is probable that a lawsuit will be filed and that the company will lose the lawsuit. However, he was unable to specify the amount of the estimated loss. to.

The company will not recognize or disclose this contingency in the 2020 financial statements, because the claim has not yet been filed. b. The company will disclose this contingency in the notes to the 2020 financial statements and will state that it does not have an estimate of the amount of the loss. c. The company will not disclose this contingency in the notes to the 2020 financial statements, because as the claim will be in 2021, the contingency belongs to the 2021 financial statements. d. The company will not publish the 2020 financial statements until the contingency is resolved.