Based on(International Accounting Standards) NO.37 Review the following situations and then answer :

1. On October 1, 2015, Emirates Chemical was identified as a potentially responsible party by its Environmental Regulatory Agency. Emirates Chemicals management along with its counsel have concluded that it is probable that Emirates Chemical will be responsible for damages, and a reasonable estimate of these damages is AED6,000,000. Emirates Chemicals insurance policy of AED9,000,000. How should Emirates Chemical report this information in its financial statements at December 31, 2015?
2. During 2015, Soha Inc. became involved in a tax dispute with the government. Soha's attorneys have indicated that they believe it is probable that Soha will lose this dispute. They also believe that Soha will have to pay the government between AED800,000 and AED1,400,000. What amount, if any, should be reported as a liability for this tax dispute as of December 31, 2015?

3. Fahed is involved in a tax dispute with the tax authorities. The most likely outcome of this dispute is that Fahed will lose and have to pay $400,000. The minimum it will lose is $20,000 and the maximum is $2,500,000.