In August 2021 the Northwest Arctic Borough brought action against Northstar Resources under the Clean Water Act before the U.S. District Court of Alaska for $2.8 million for polluting Red Dog Creek. It is possible that the suit will be successful, but the amount of damages Northstar Resources will have to pay is not reasonably determinable.

Discuss the financial reporting issues (recognize or do not recognize) and provide recommendation(s) on how to handle each situation. As you write, keep your audience in mind.