Final answer:
A type I subsequent event always requires an adjustment to the financial statements.
Step-by-step explanation:
A type I subsequent event should always require an adjustment to the financial statements. This is because a type I subsequent event is an event or transaction that provides additional information about conditions that existed at the end of the reporting period and requires adjustment to the financial statements to reflect the impact. For example, if a company discovers that a major customer's account receivable is uncollectible after the financial statements have been issued, an adjustment would be required to reflect this new information.
Option A is incorrect because a type I subsequent event does require an adjustment. Option C is incorrect because a type I subsequent event requires more than just disclosure in the notes, it requires an adjustment. Option D is incorrect because management does not determine the disclosure requirements for type I subsequent events, an adjustment is required.