The answer is C why? damages for wrongful dismissal. The company's solicitors have advised that the former director iSunlikely to succeed with his claim, although the chance of Biss Co paving any monies to the ex-directoris not remote. The solicitors' estimates of Biss Co's potential liabilities are:24Legal costs (to be incurred whether the claim is successful or not)Settlement of claim if successful50,000500,000550,000According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, how should this cialm betreated in Bliss Co's financial statements?AProvision of $550,000Disclose a contingent liability of $550,000Disclose a provision of $50,000 and a contingent liability of $500,000C

Provision is to be made when outflow is sure but amount can only be estimated to reasonable extent…

has commenced an action against the company claiming substan ssal. The company's solicitors have advised that the former directo claim, although the chance of Biss Co paying any monies to the estimates of Biss Co's potential liabilities are: urred whether the claim is successful or not) successful ns, Contingent Liabilities and Contingent Assets, how should statements? liability of $550,000 f $50.000 and a contingent liability of $E

has commenced an action against the company claiming substan ssal. The company's solicitors have advised that the former directo claim, although the chance of Biss Co paying any monies to the estimates of Biss Co's potential liabilities are: urred whether the claim is successful or not) successful ns, Contingent Liabilities and Contingent Assets, how should statements? liability of $550,000 f $50.000 and a contingent liability of $E

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 33P

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