Lewis Co recently suffered a burglary and goods to the value of 450,000 were stolen. Management of the company has filed a claim for this amount with the insurance company, which has confirmed that Lewis Co will receive compensation. How should this be treated in the financial statements?

Recognise a receivable for the full 450,000 in the statement of financial position

Do not recognise in the statement of financial position but disclose narrative details of the claim.

Do not recognise in the statement of financial position but disclose both narrative and the figure expected to be reimbursed.

No disclosure or recognition required