TB MC Qu$.13-79($Static$)$ After the end of the $2024$ fiscal year...

After the end of the $2024$ fiscal year but before financial statements were issued, an accident occurred at KPN$$s manufacturing facility that probably will result in material losses to KPN$.$ KPN has relatively precise estimates of those losses. KPN should:

Multiple Choice

disclose the potential for loss in the notes, but not indicate their estimate of an amount.

accrue the loss, since it is probable and can be reasonably estimated, and explain it in a note to the financial statements.

do nothing relative to the contingency.

disclose the potential losses and their effect on key numbers in the financial statements.