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During the year 20X0, the Contractor company found itself in need of dispensing with a group of collaborators from administrative areas due to a sharp

During the year 20X0, the Contractor company found itself in need of dispensing with a group of collaborators from administrative areas due to a sharp drop in sales. This group warned the company that the legal benefits that were canceled were well below the figure that corresponded to them and that they would seek to sue the company. During the year 20X1, the workers who had had their contracts terminated have filed a lawsuit for unfair dismissal since, in their opinion, the provisions of the labor code were not complied with. The entity's legal advisers believe that there is between 30% and 40% probability that the court ruling will be unfavorable and condemnatory for the company and that most of the claims of the dismissed workers will be recognized. During the year 20X2 the judicial process begins and due to the evidence presented by the workers, the entity's legal advisors believe that there is a high degree of probability that the company will lose the lawsuit. The initial claim of 20X1 was filed for 10,000,000; however, the total cost estimated by the advisors is 8,000,000 as of December 31, 20X2. As a General Accountant and based on the information indicated for each accounting closing, what should be done?

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