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13 What is the accounting treatment for a group where the reporting entity is being sued, with a high likelihood of losing the case and

13 What is the accounting treatment for a group where the reporting entity is being sued, with a high likelihood of losing the case and being asked to pay out a compensation of 1 million dollars ? a. Upon consolidation, the unrecorded liability will be recognised at its fair value. b. No reporting is necessary until the case is settled. c. Only a footnote in the consolidated financial statements is required. d. None of the above

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