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Lorange AG became involved in a lawsuit with a government agency. The company's legal counsel indicates that there is a 65 percent likelihood that the
- Lorange AG became involved in a lawsuit with a government agency. The company's legal counsel indicates that there is a 65 percent likelihood that the company will lose this dispute and estimates that the amount the company will have to pay is between $ 500,000 and $ 700,000, with all amounts in that range being equally likely.
Under IFRS, what amount, if any, should Lorange recognize as a provision related to this lawsuit?
A.$ 500,000.
B.$ 600,000.
C.$ 0.
D.$ 700,000.
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Financial Accounting Fundamentals
Authors: John J. Wild
5th edition
1308500102, 1308500106, 78025753, 978-0078025754
