Please give appropriate reasons for your answer in each case.

17 Examine the following cases for Ruliable Ltd and indicate whether you believe the company should recognise a liability Potential costs due to the discovery of a possible defect related to one of its products. It is probable that claims will be made and the costs can be reliably estimated b There is a potential claim for damages to be paid from a lawsuit filed this year against another company It is probable that the proceeds from the claim will be paid by Ruliable next year c The company has a policy whereby it overhauls its major machinery every five years. This has been its practice for the last 25 years, At the balance date, the machinery had been overhauled three years previously AArations of Hawkeye Corporation and its