medium10 pts · first answer countsprovisions

A lawsuit that may be lost

A company is being sued for ₹8,00,000. Its lawyers say losing is possible but not probable. Under Ind AS 37 / IAS 37, how should this be treated?

A.Recognise a provision of ₹8,00,000B.Disclose it as a contingent liability in the notesC.Ignore it completelyD.Record it as an expense and a payable

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