Apps Getting Started Imported From IE 1mported From Fire Domain Manager- D che value 9.09 points Problem 13-7 Various liabilities [L013-4, 13-5, 13-6, 13-7] HolmesWatson (HW) is considering what the effect would be of reporting its liabilities under IFRS rather than U.S. GAAP. The following facts apply a. HW is defending against a lawsuit and believes it is virtually certain to lose in court. If it loses the lawsuit management estimates it will need to pay a range of damages that falls between $5,900,000 and $10,900,000, with each amount in that range equally likely b. HW is defending against another lawsuit that is identical to item (a), but the relevant losses will only occur far into the future. The present values of the endpoints of the range are $3,900,000 and $8.900,000, with the timing of cash flow somewhat uncertain. HW considers these effects of the time value of money to be material c. HW is defending against another lawsuit for which management believes HW has a slightly worse than nd $9.900.000, with each amount in that range 000 of short-term debt that it intends to refinance on a long-term basis. Soon after the 50/50 chance of losing in court If it loses the lawsuit, management estimates HW will need to pay a range of damages that falls between $3,900,000 equally likely d HW has $10.900, balance sheet date, but before issuance of the necessary to refinance the debt HW obtained the financing Required: For ead, item, indicate ho w treatment of the amount would differ between us GAAP and IFRS S. ERS