iders Ltd is a food company. The company was recently involved in an incident that resulted in the death of 2 people possibly as a result of food poisoning from products sold by the company. Legal proceedings are started seeking damages from the entity for $10 million, but the company disputes the incident. Up to the date of authorisation of the financial statements for the year to 30 June 2020 for the issue, the companys lawyers advise that it is highly probable that the entity will be found liable.

Required Provide a recommendation to the company on what should be the accounting treatment for the amount of damages using the AASB Framework.