International Accounting (Cont. 4029) ASSESSMENT ACTIVITY: PROVISION/ CONTINGENCY 20 points OBJECTIVES 1. Describe the critical role of international perspectives in the application of accounting. 2. Discuss how differences in culture, the legal system, and the socio-economic environment impact the interpretation and analysis of financial information in different countries. 3. Improve your skills related to global financial information. 4. Discuss the need for the creation of uniform accounting standards of international application. Required: Answer the following questions In June 2021, a costumer at ABC Corp slipped on a wet floor and broke a hip. The costumer sued the corporation in July,2019. The company's attorneys believe that it is 55% likely that ABC will lose this case. Management concludes that the 55% likelihood of incurring the loss is less than probable. The attorneys estimate that the loss will range between $700,000 and $800,000, Management There is no best estimate in this range of possible losses. The company beginning balance for provision liability is $100,000. Use IFRS. 1. Determine the Provision Loss $ (10 points) 2. If US GAAP is used. What will be the loss? $ (10 points) Show your computations