$6.$ Bristol plc needs to decide how to account for the following two legal claims:

i$.$ A legal claim brought against the company by a customer. Bristol plc believes that the claim has no merit and it is confident of winning the case. Bristol plc$$s lawyers believe that there is a remote possibility that Bristol may need to make payments in relation to this claim.

ii$.$ A legal claim brought against the company by a supplier. Bristol plc has accepted liability. The amount to be paid has not been agreed yet, but Bristol plc$$s lawyers have provided a reliable estimation of it$.$

Which one of the following statements describes the accounting that is most likely to be correct according to IAS $37?$

A$.$ Both claims should be accounted as provisions

B$.$ Claim i$)$ should be accounted as a provision

C$.$ Claim ii$)$ should be accounted as a provision

D$.$ Both claims should be accounted as contingent liabilities