Case 01 A legal action claiming compensation of $20,000,000 was filed against Entity A in March 2022 due to defamation. In this case is more likely than not that the amount claimed will have to be paid. Case 02 Legal action was taken by Entity A against its major competitor due to illegal activity, claiming damages of $40,000,000 was started in January 2021 and is near completion. In this case is more likely than not that the amount claimed will have to be received. REQUIRED: How should Entity A report this legal action in the financial statements for the year ended 31 March 2023? CHOICES FOR INPUT: | Provision | Contingent liability | Contingent asset | None of them | ANSWER: Case 01 - The answer is Case 02 . The answer is QUESTION 2 Case 01 The govemment of HKSAR introduced new laws on data protection, which will come into force on 1 January 2023. Entity A's directors have agreed that this will require a lot of staff to be retrained. On 31 October 2022, the directors were waiting on a report