QUESTION 3 The following item have to be considered in finalising the financial statements of Quality Ltd: The company gives warranties on its products. The company's statistics show that about 5% of sales give rise to a warranty claim. According to IAS 37 Provisions, contingent liabilities and continent assets, what is the correct action to be taken in the financial statements for this item? Select one: Create a provision Disclose by note only INo action A X IB X IC X B A