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Provisions and contingent liabilities (IAS 37) (1) Determination of provisions A Limited has labour and overtime litigation claims against it brought by employees after leaving

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Provisions and contingent liabilities (IAS 37) (1) Determination of provisions A Limited has labour and overtime litigation claims against it brought by employees after leaving the bank. Legal proceedings are started in 2014, but A Limited disputes the liability. Up to the date of authorisation of financial statements for the year 31 December 2014 for issue, the company's lawyers advise that it is probable that the bank will not be found liable. When the financial statements for 31 December 2015 are being prepared, the lawyers advise that owing to developments in the case, it is probable that the bank would be liable. Estimated damages are $11m and that a ruling will not take place before 31 December 2016. The final ruling on 31 December 2016 was for $9m payable within 30 days. Explain the accounting entries for 2014, 2015 and 2016

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