Q4- At 30 April 20X7 Ellison Ltd has the following two legal claims outstanding: 1 A legal action against the company filed in February 20X8. Ellison Ltd has been advised that it is probable that the liability will materialise. 2 A legal action taken by the company against another entity, started in March 20X4. Ellison Ltd has been advised that it is probable that it will win the case. According to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, how should the company report these legal actions in its financial statements for the year ended 30 April 20X7

Q5- Which of the following events after the end of the reporting period would normally be classified as adjusting, according to IAS 10 Events After the Reporting Period? Destruction of a major non-current asset Discovery of error or fraud Issue of shares Purchases of a major non-current asset