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(CPA, adapted) Whyte Company prepares its financial statements in accordance with IFRS. The company is the plaintiff in a patent-infringement lawsuit. At December 31, 2020,

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(CPA, adapted) Whyte Company prepares its financial statements in accordance with IFRS. The company is the plaintiff in a patent-infringement lawsuit. At December 31, 2020, Whyte's management is virtually certain that early in 2021 the company will win the case and be awarded damages of $4 million. What is the proper accounting treatment of the patent infringement case in Whyte's annual report? Accrue a gain contingency for the estimated amount of the settlement and write a footnote disclosure. Prepare a footnote disclosure only. No accruals or footnote disclosures for contingent gains are permitted under IFRS. None of these answers are correct

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