Beautyres Ltd sells tyres and fits them to customers vehicles. During $20$X$7$ it discovered that the tyres fitted on cars since $20$X$5$ were faulty. Although not legally required to do so$,$ Beautyres Ltd announced a product recall to replace all tyres it had sold since $20$X$5,$ including those tyres for which the $90-$day warranty had expired. Beautyres Ltd knows the cost of replacing tyres but is unsure how many customers will respond to the recall.

Required

Outline what needs to be considered in deciding whether Beautyres Ltd should recognise a liability for replacing tyres according to AASB $137.$