Adams Ltd Provisions have to be made for the following items in the accounts of Adams Ltd $($Adams$)$ for the year to $30$ June $2016.($a$)$ environmental damage was caused by discharge of a noxious substance during the year. The company has spent TZS $50,000$ on clear$-$up costs at the year end but further work requires to be done. Advisors estimate that there is a $50\%$ likelihood that the additional work will cost TZS $75,000,$ a $30\%$ chance it will cost TZS $90,000$ and a $20\%$ chance it will cost TZS $110,000.($b$)$ Adams sells photocopiers. The following details are available: ProjectWarrantyNumber ofTypeperiod sales $($units$)$ in yearX$251$ year$400$X$25$S$1$ year$310$X$302$ years$250$ The company estimates that $15\%,12\%$ and $20\%$ of X$25,$ X$25$S and X$30$ will require repair within the warranty period. Estimated average repair costs are TZS $150,$ TZS $200$ and TZS $220$ for X$25,$ X$25$S and X$30$ respectively. During the current year TZS $15,500$ was paid on repairing photocopiers sold in the year. $($c$)$ At $30$ June $2005$ the accounts contained a provision of TZS $195,000$ relating to potential damages arising from a court case being brought against the company. An out$-$of$-$court settlement was reached in December $2005$ with Adams making a full and final payment of TZS $148,000.($d$)$ Adams built a new factory in $2004.$ A decommissioning provision was created at $30$ June $2003$ based on: estimated decommissioning costsTZS $5\mathrm{.}5$mdiscount rate$6\%$estimated decommissioning date$30\mathrm{.}6\mathrm{.}2016$ Due to changes in legislation in June $2006$ it is now estimated that decommissioning costs will be TZS $7\mathrm{.}0$m in $2016.$ It is company policy to capitalise decommissioning costs. Required: $($i$)$ explain, using appropriate figures, the effect of the above on the financial statements of Adams for the year to $30$ June $2006$; $($ii$)$ prepare the provisions disclosure note for inclusion in the $30$ June $2006$ accounts.