Question
Dash Co has the following two legal claims outstanding: A legal action against Dash Co claiming compensation of $700,000, filed in February 20X7. Dash Co
Dash Co has the following two legal claims outstanding: A legal action against Dash Co claiming compensation of $700,000, filed in February 20X7. Dash Co has been advised that it is probable that the liability will materialise. A legal action by Dash Co against another entity, claiming damages of $300,000, started in March 20X7. Dash Co has been advised that it is probable that it will win the case. How should Dash Co report these legal actions in its financial statements for the year ended 30 April 20X7? Legal action against Dash Co Legal action taken by Dash Co A Disclose as a note No disclosure B Make a provision No disclosure C Make a provision Disclose as a note D Make a provision Accrue the income
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