Which one of the following contingencies requires financial statement disclosure?

A) A lawsuit that the firm's attorneys believe will be dropped.
B) A lawsuit that the firm's attorneys believe will probably be settled for $75,000.
C) A reasonably possible loss on a lawsuit that the firm's attorneys cannot estimate the loss.
D) A reasonably possible loss on a lawsuit that the firm's attorneys believe will be settled for $100,000.

Financial Statement Disclosure

The provision of information in a company's financial statements beyond the basic financial numbers, aimed at giving a complete understanding of the company's financial health.

Lawsuit Loss

Financial loss recognized by a company due to legal judgments or settlements in lawsuits.

Reasonably Possible Loss

A loss that is not assured but has a good chance of occurring, requiring disclosure in financial statements if quantifiable and material.