Case 1: XX-Blaze Bhd is a chemical-laboratory based company. The company decided not to buy any insurance on the company but, rather to self-insure in case of fire loss. Obtaining opinion from the expert, the probability of fire loss was measured at a value of RM1,200,000 (the occurrence of fire loss is estimated once in every 15 years). The new account clerk recognizes a provision of RM80,000 each year. Case 2: Sonic HD Bhd is a company produces television. The company provides warranties at the time of sale to its customers for its product. Under the warranty period, the company is responsible to make good of any its defective products either by repair or replacement within 3 years from the date of sale. Based on its experience, it is probable that there will be some warranties claims and the company made an allocation for warranty provisions. REQUIRED: Explain the accounting treatment practices for each case and how we will report them in the statement of financial statement (if any). Provide your justifications