Final answer:
An unrecognized item that meets definition requirements can indeed be disclosed in the financial statements under certain circumstances, typically in the notes or management discussion sections, even if not recognized on the balance sheet or income statement.
Step-by-step explanation:
The question asks whether it is possible for an item that meets the definition requirements but is not recognized to be disclosed elsewhere in the financial statements. The correct answer is d) Yes, under certain circumstances, they can be disclosed. Financial reporting standards often require or permit the disclosure of certain information even if the item is not recognized on the balance sheet or income statement. This can help provide a more comprehensive picture of a company's financial health and future prospects. Examples include commitments and contingencies, or some financial instruments. Information can be included in the notes to the financial statements, in the management discussion and analysis section, or integrated into other pertinent sections depending on the relevant accounting standards.