A printing press operator Bob, who suffered head injuries at work whilst carrying out his normal duties, is suing his employer Perfect Printing for damages, as the company did not comply with Occupational Health & Safety standards.

The court has found in favour of the employee as Bobs grounds for suing were strong and highlighted the Companys gross misconduct. However, the court is yet to reach a decision on damages.

Required:

Use the definition of the term liability and the recognition criteria as stated in the Conceptual Framework if Perfect Printing should recognise the litigation as their liability on their Balance Sheet.

Note: In order to get full marks, you must clearly state and justify your answer. Stating yes or no without any justification will not receive any marks. (6 marks)