discuss the following each case  how the entity should account for the transactions in accordance with MFRS137 – Provisions, Contingent Liabilities, and Contingent Assets, giving reasons for your answer.

i. On During the financial year 2018, HB Berhad sued its main supplier for RM1.5 million damages for faulty supply of materials which has affected its production. As at the reporting date, a decision was given in favour of HB Berhad. The hearing to determine the amount of damages, however, will only be held after the reporting date.

ii. MK Bhd sold goods with a warranty where a customers are covered for the cost of repairs due to manufacturing defects within the first year after purchase. MK Bhd estimated that the probability of goods sold with major defects will be 6% and the estimated repair cost will be RM 3 million.

iii. A retailer gives "money-back" guarantee at the time of sale to purchasers of its product. Under the terms of the sale, the retailer undertakes to refund the full amount to a purchaser who is not satisfied with the good and return it to the retailer within a one year from date of sale. On past experience, it is probable that there will be some purchasers who will return the goods sold to them.

iv. An entity in the oil industry causes contamination and operates in a country where there is no environmental legislation. However, the entity has a widely published environmental policy in which it undertakes to clean up all contaminations that it causes. The entity has a record of honouring this published policy.