QUESTION 5 PART 1: Jupiter Ltd As the financial director of Jupiter, you have the following to consider in the accounts for the year to 31 December 2020: (i) A customer has made a claim against Jupiter for defective goods sold during the current year. The claim is nearing settlement and Jupiter's legal advisers think it is probable that a sum of 1,200,000 will be paid by Jupiter in settlement, in addition to all legal costs. (ii) Jupiter Ltd offers a warranty on its products at no cost to the customer. During the year to 31 December, sales made evenly throughout the year, amounted to 5 mln. Past experience has been that around 8% of items sold are returned for repair under warranty and that this will cost, on average, 15% of the sales price. (iii) Jupiter Ltd offers its customers pizza deal if they send in 5 tokens from its product purchase. During the year to 31 December the company sold 1,500,000 units of its product and provided 1 token for each product. Customers redeemed 600,000 tokens receiving 120,000 pizza deals so far. The company estimates that a total of 60% of the tokens will be redeemed overall. If each pizza deal costs the company 13, how much provision for this promotion should be made at the end of the year? (iv) Jupiter Ltd's order was delayed from supplier by two months which caused a major disruption to a production line. Jupiter is suing supplier for failing to deliver on time and the loss suffered. It is suing for the total of 2.5 mln and lawyers estimate that it is probable that it will win the case. (v) Jupiter has a major restructuring and it has been announced to all its employees before the year end. The total restructuring costs is expected to be 12mln (including 7min for redundancy, 2mln for factory shutdown, 2mln for retraining costs and 1mln for advertising campaign). (vi) Jupiter expects to that it is new plant carries a decommissioning cost of 9.2mln and clean up costs of 2.4 mln and it is expected to be paid in 15 year's time. Discount rate is 7%. Required Explain, quantifying your answer where possible, how the above should be accounted for in accordance with IAS 37 (3 marks).