ABC Company was sued by a group of customers who suffered burns while using their products. There is a high probability that the company will lose and have to pay $1,000,000. For these purposes, indicate what the company will do in its financial statements.

multiple choice

a)Disclosure of this information is not required.

b)It will recognize and disclose a contingent debt in the statement of financial position for $1,000,000.

c)You have to wait for the legal dispute to be resolved before you can release that information.

d)It will disclose the contingent debt and the amount it estimates to pay only in the notes to the financial statements.