Mdm.Tania highlighted the recent issue that haunted the management of Mahsuri Bhd when one customer sued the company for negligence. However, based on professional opinion, it is likely that Mahsuri Bhd will win the case since the customer has no strong justification to blame the company for his own careless not to read the terms and conditions carefully before sign the agreement.

1. You are required to help Mdm. Tania by:

1. Identify the problem facing by Mdm. Tania related to the lawsuit made by the customer.
2. Analyze the problem by referring to the Conceptual Framework for Financial Reporting
3. Help her to make a decision related to accounting for the lawsuit.