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iii.Client A is currently engaged in a legal dispute with a supplier in which the outcome is yet to be known. The following number of
iii.Client A is currently engaged in a legal dispute with a supplier in which the outcome is yet to be known. The following number of possibilities have arisen since and you have to assist Wayne in solving the following issues: On 1 January 2020 possible damages are RM 100,000 but it is not expected to have to pay them. . On 3 March 2020 the company is expected to have to pay the damages but is unable to estimate the amount in which the RM100.000 estimated earlier could be wrong. . On 5 June 2020, the lawyers informed that the company may not be at fault and could be acquitted. On 10 August 2020 the court announced that the company has to pay damages of RM250,000 to the victim. Required: Explain the possible obligations if any as per MFRS 137 - Contingent Liabilities for each of the situations above (6 marks)
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