Question
At the end of 20X1, a company recognized a provision for possible legal claims of 190.000 . During 20X2, the company reached an agreement with
At the end of 20X1, a company recognized a provision for possible legal claims of 190.000 . During 20X2, the company reached an agreement with the claimants for an amount of 150.000 .
What would be the impact of this in companys accounts?
Select one:
a. I want to leave this question blank
b. This agreement should be accounted for, without using the provision funds
c. The company should reduce the provision by an amount of 40.000
d. The company should keep the provision in its balance sheet, for an amount of 190.000
e. The company should cancel the provision, recognizing a surplus of 40.000
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