Hunter Ltd is attempting to bring its accounts in line with International Financial Reporting Standards (IFRS). Advise the accountant of Hunter Ltd whether a liability exists in each of the following cases and, if so, what the liability is.

(a) The company is being sued for injuries sustained by an employee who claims that the workplace steps he fell down were unsafe. The outcome of the lawsuit is highly uncertain.

(b) An order for raw materials has been placed with the firm's regular supplier.

(c) There is a signed contract for the construction by Oh, Suzanna Ltd of a major item of plant for Hunter Ltd.

(d) The firm has unsecured notes of $1 000 000 outstanding. Interest is payable six-monthly in June and December. It is now August.

(e) At the end of the year, half of the firm's employees have non-vested sick leave owing.

AppendixLO1