A lawsuit has been filed against Final Day Company. As year-end, the companys attorney believes that there is a 57% likelihood that the company will be found liable. The attorney believes that the estimated range of the liability is between $250,000 and $400,000 and that all amounts within the range are equally likely.

Unrelated to this lawsuit, the company has settled an insurance claim before year-end in the amount of $64000 The company will receive the money subsequent to year-end.

Questions:

1. What would be the amount, if any, that Final Day would record on the balance sheet related to the lawsuit under IFRS and US GAAP?

2. What amount, if any, would Final Day record related to the insurance settlement under IFRS and US GAAP?