Current liabilities Provision Provision for warranties P270,000 Non-current liabilities Provision Provision for warranties P180,000 Note 36 Contingent liabilities Burdeos is engaged in litigation with various parties in relation to allergic reactions to traces of peanuts alleged to have been found in packets of fruit gums. Burdeos strenuously denies the allegations and, as at the date of authorizing the financial statements for issue, is unable to estimate the financial effect, if any, of any costs or damages that may be payable to the plaintiffs. The provision for warranties at December 31, 2009 was calculated using the following assumptions: There was no balance carried forward from the prior year. Estimated cost of repairs products with minor defects P1,000,000 Estimated cost of repairs products with major defects P6,000,000 Expected % of products sold during 2009 having no Defects in 2010 80% Expected % of products sold during 2009 having Minor defects in 2010 15% Expected % of products sold during 2009 having Major defects in 2010