QUESTION 3 (11 marks) Medihelp Limited is a private hospital group that operates across South Africa and focuses on providing acute care, specialist-orientated, multi-disciplinary hospital services, and related service offerings using the latest technology. The group has a December financial year-end. On the 15th of November 2023, Mr. Fall, a visitor to one of the hospitals in Cape Town, slipped on a wet floor in the hospital reception area while on his way to visit his ill father. Due to the fall, he sustained numerous fractures to his right arm and was immobilised for 5 months. On the 1st of December 2023, Mr. Fall filed a lawsuit against the hospital for negligence, claiming damages for the injuries sustained and loss of income suffered as a result of his fall. On 31 December 2023, the attorneys of Medihelp Limited reported that it is highly probable that Mr. Fall's claim against the company will be successful. However, they are uncertain about the amount of the damages that will be awarded and will gain a better understanding of the possible amount of damages after the court proceedings to be held on the 2nd of February 2024. Management has decided that there is not enough information at year-end to determine a reasonable estimate of the amount of the damages. REQUIRED: Discuss how the legal claim should be recognised, measured and disclosed in the annual financial statements of Medihelp Limited for the financial year ended 31 December 2023 in accordance with IAS 37 of the International Financial Reporting Standards. (11 marks) QUESTION 3 (11 marks) Medihelp Limited is a private hospital group that operates across South Africa and focuses on providing acute care, specialist-orientated, multi-disciplinary hospital services, and related service offerings using the latest technology. The group has a December financial year-end. On the 15th of November 2023, Mr. Fall, a visitor to one of the hospitals in Cape Town, slipped on a wet floor in the hospital reception area while on his way to visit his ill father. Due to the fall, he sustained numerous fractures to his right arm and was immobilised for 5 months. On the 1st of December 2023, Mr. Fall filed a lawsuit against the hospital for negligence, claiming damages for the injuries sustained and loss of income suffered as a result of his fall. On 31 December 2023, the attorneys of Medihelp Limited reported that it is highly probable that Mr. Fall's claim against the company will be successful. However, they are uncertain about the amount of the damages that will be awarded and will gain a better understanding of the possible amount of damages after the court proceedings to be held on the 2nd of February 2024. Management has decided that there is not enough information at year-end to determine a reasonable estimate of the amount of the damages. REQUIRED: Discuss how the legal claim should be recognised, measured and disclosed in the annual financial statements of Medihelp Limited for the financial year ended 31 December 2023 in accordance with IAS 37 of the International Financial Reporting Standards. (11 marks)