Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Agile Governance And Audit An Overview For Auditors And Agile Teams

Authors: Christopher Wright

1st Edition

184928587X, 978-1849285872

More Books

Students also viewed these Accounting questions

Question

=+Dec. 27. Declared a $0.20-per-share dividend on common stock.

Answered: 1 week ago

Question

Evaluate employees readiness for training. page 275

Answered: 1 week ago