In completing the Simpson Company audit for the fiscal year ended, December 31, 2010, the following events occurred after the close of the fiscal year but before all members of the audit team left the client headquarters.
1. On January 15, 2011, one of the company’s four major plants was flooded, resulting in a loss of $20 million worth of inventory and equipment. Insurance will cover $15 million of the loss.
2. On February 14, 2011, the Board of Directors unanimously confirmed a resolution to issue $30 million of preferred stock.
State what disclosures, if any, would be made in each case in the Simpson Company notes to the financial statements?