Due to the very high cost of insurance, the company you work decided to self-insure. This decision has saved a significant amount of money for the company. However, a recent event may jeopardize that savings. An improperly stacked box fell from the top shelf of a warehouse, injuring an employee. The employee broke her wrist after being hit by the box. The employee has been treated for her injuries and has retained a lawyer. The lawyer has not yet filed a formal claim with the company. According to your internal risk management team, the amount of claim likely to be sought by the employee could range between $50,000 to $300,000. Is your company required to record a liability for this incident? If so, when, and for what amount? What disclosures are required, if any? Provide an explanation of your position and the authority for it.