1. Bears Limiteds non-current assets require major repairs. The directors have not yet taken the decision to undertake these repairs and the total cost of the repairs has not yet been determined. The directors would like to recognize a liability for these repairs on the companys statement of financial position but they are not sure they can do so as they do not have an exact figure for the cost of the repairs.

Required:

Draft notes for a meeting with the directors to explain whether the repairs can be recognized as a liability on the companys statement of financial position or not.