Final answer:
A Type II subsequent event usually requires disclosure in the footnotes of financial statements, providing users with context about events or conditions that occurred after the balance sheet date but do not require adjustments to the financials reported. Option c is correct.
Step-by-step explanation:
A Type II subsequent event refers to events or conditions that occurred after the balance sheet date, but before the financial statements are issued or available to be issued, which indicate that conditions arose after the balance sheet date that do not impact the financial statements being reported on. Therefore, a Type II subsequent event usually requires disclosure in the footnotes but does not typically require adjustment to the financial statements themselves. The disclosure is necessary to prevent the financial statements from being misleading to the users.
This information gives users context for events or conditions that could affect their decision-making but does not alter the historical financials. For example, if a company's factory is destroyed by a natural disaster after the reporting period but before the financial statements are released, this would not change the financial results up to the balance sheet date but would be disclosed to inform the financial statement users of significant events.