BMP Ltd is a mining company operating in the Kimberly region of Western Australia. In response to legal action by a local council the court has ordered BMP Ltd to repair the environmental damage it caused to the local river system. The cost of the repair work has been estimated at $5m to $15m. BMP Ltd has appealed the damages claim. Lawyers have advised BMP Ltd that there is a 50% chance they will lose the appeal. Explain how BMP Ltd should account for the lawsuit. Justify your answer by reference to the Conceptual Frameworks definitions and recognition criteria.