On March 16, 2021, an explosion at Zach Industries caused damage to property in the surrounding area. As at March 31, no claims had been made, though Zach's lawyers deemed it reasonably possible that Zach will be found negligent. The lawyers believe $5,000,000 is a reasonable estimate of damages. Zach has a $6,000,000 comprehensive liability policy that requires a $500,000 deductible. How should this casualty be reported in Zach's December 31, 2020 financial statements if the auditor's field work was not completed until April 2021?