A local medical provider carried a provision of USD $200,000$ in its draft financial statements to $31$ March $20$X$4$ in relation to an unresolved court case. On $15$ April $20$X$4,$ when the financial statements to $31$ March $20$X$4$ had not yet been authorised for issue, the case was settled and the court decided the final total damages payable by the provider to be USD $280,000.$ Following IPSAS $14$ 'Events after the reporting period, what is the correct accounting treatment in relation to this event?

Please select the right answer.

Credit the provision by USD $280,000$

Disclose USD $80,000$

Credit the provision by USD $80,000$

Do not disclose or adjust the level of the provision