A customer was injured while using one of the products sold by A&A Company on November 20, 2020. A&A Company received notification from the customer's lawyer on January 5, 2021 that the business is being sued for damages. A&A Company's lawyers believe that it is possible that the outcome of the lawsuit will be unfavourable and that the company may need to spend $200,000 to $750,000 to settle the lawsuit. A&A Company follows IFRS. and has a year end of December 31, 2020. Required: Indicate whether any potential financial effects of this lawsuit should be accrued in the 2020 financial statements of A&A Company. Why or why not? How will the amount of the accrual be determined (if applicable)