Q Search CONTINGENCIES Question -To be submitted A newspaper accuses a public figure of being mafia, even though they know this is not true. The public figure sues and both sets of lawyers agree that it is likely that the public figure will win the case and receive damages in the order of $1 million. There is no possibility of the case being resolved before the financial statements are finalised. Required: Discuss how the above litigation will be represented in the financial statements of both entities; the newspaper and the public figure