3. Company B, a listed company, provides food to function centres that host events such as weddings and engagement parties. After an engagement party held by one of Company B's customers in June 2021, 100 people become seriously ill, possibly as a result of food poisoning from products sold by Company B. Legal proceedings were commenced seeking damages from Company B, which disputed liability by claiming that the function centre was at fault for handling the food incorrectly. Up to the date of authorization for the financial statements' issue for the year to 30 June 2021, Company Lawyers advised that it was probable that company B would not be found liable. However, two weeks after the financial statements were published, Company B's lawyer's advice that, owing to developments in the case, it was probable that Company B would be found liable and the estimated damages would be material to the company's reported profits. Required: Should company B recognize a liability for damages in its financial statements at 30 June 2021? How should it deal with the information it receives two weeks after the financial statements are published?