1 Task details: In June 2020 Great Southern Ltd built a submarine under a contract with the Australian Navy. The contract required Great Southern Ltd to provide a one-year warranty. The accountant was unsure how to measure the warranty because the design of the submarine differed from those previously built by Great Southern Ltd. The trainee accountant was asked to obtain more information, so she asked some engineers for their advice on the expected cost of servicing the warranty. The trainee's report is summarised below. Engineer's estimates and accompanying explanations Worst-case scenario Best-case scenario Most probable scenario $3,000,000 $600,000 $1,500,000 Quote from a Japanese company to take on $2,000,000 the warranty Recommendation: The provision for warranty should not be recognised because it is too difficult to measure. The accountant needs to decide whether to recognise a provision for warranty and, if so, how to measure it. Required: a) Describe two principles from AASB 137 that are relevant to the accountant's decision. b) Use the principles identified in (a), above, to evaluate the trainee accountant's recommendation. c) Explain how the provision for warranty should be recorded when the contract was signed? d) Based on AASB 137.37 and AASB 137.38, explain how the trainee accountant could use the engineer's estimate to determine the amount for provision for warranty