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Company A is suing Company B for $500 000 in relation to a breach of copyright. Company B produced designer clothes entical to those
Company A is suing Company B for $500 000 in relation to a breach of copyright. Company B produced designer clothes entical to those for which Company A holds legal rights, without permission and without paying Company A for permission to e the designs. Legal experts have advised Company A that it has a strong case and that there is a 50% likelihood that Company will be required to pay damages, although these are estimated at $400 000. Explain whether the potential damages receivable for Company A would meet the definition and recognition criteria of an asset, applying the principles in the Proposed Framework (2018 Conceptual Framework). (15 marks)
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