Omicron Co.s headquarters are located on a floodplain and the company sustained significant losses as a result of a February 20X4 flood, the first such flood in 100 years. The flood occurred prior to the issuance of Omicrons year-end 20X3 financial statements, and the associated losses are considered to be material. How should the losses resulting from the flood be reported in Omicrons year-end 20X3 financial statements?

Both a disclosure and an accrual.

Neither a disclosure nor an accrual.

Disclosure only of the losses.

Only an accrual for the losses.