CRITICAL THINKING

Conduct research on media stories on the recent undoing of Slater and Gordon. A couple of articles can be found on Blackboard, however students are encouraged to conduct their own research beyond these articles.

Required:

Answer the following questions, providing reasons based on the requirements of the Conceptual Framework and AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

Based on the provided facts, how should Slater & Gordon account for the potential damages payable arising from a successful $250m class action by investors? You are not required to estimate the amount of damages which may or may not be payable by Slater & Gordon; instead you are required to explain and justify how the claim will be treated for accounting purposes.

ANALYSE (30 50 words)

Identify the issue and why it matters. Determine what you need to find out.

RESEARCH & EVALUATE (200-250 words)

Present relevant facts and evidence, or issues.

ANSWER (200-250 words)

Provide your opinion based on your discussion of relevant facts, evidence, or issues.