On 20 December 2017 one of Hikayat Corporation lorries was involved in an accident with a car. The lorry driver was responsible for the accident and the company agreed to pay for the repair to the car. The company put in a claim to its insurers on 17 January 2018 for the cost of the claim. The company expected the claim to be settled by the insurance company except for a $250 excess on the insurance policy. The insurance company may dispute the claim and not pay out; however, the company believes that the chance of this occurring is low. The cost of repairing the car was estimated as $5,000, all of which was incurred after the year-end. Required: Explain how this item should be treated in the financial statements for the year ended 31 December 2017.