Provide the response to the issues stated in the case with a complete citation of the guidance sources. (FASB guidance sources)

Falling Boxes

On January 31, an improperly stacked box fell from the top shelf of a warehouse, injuring an employee. The employee was hit, fell, and broke his wrist. Your company self-insures for the risk of such incidents rather than paying an insurance company to absorb the risk of such claims. The employee has been treated for his 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 and $300,000. Is your company required to record a liability for this incident? When, and for what amount? What dis-closures are required, if any? List FASB codification standards to support your answer.