Suka Balak Bhd is a logging company with many concessions in the east coast states. In the financial year 2020, a suit was filed by Hanizam & Co against the company to represent the indigenous community in Kelantan over the exploration of illegal timber on their customary land. The total loss claims filed amounted to RM50 million. The company's lawyers are of the view that the case filed by the plaintiff has no legal merit and is confident of winning the case in Court. The company has allocated legal costs expected to amount to RM250,000. It has to be paid by the defendant to Hanizam & Co notwithstanding the outcome of the trial. Payment of legal costs should be settled based on the progress of the case. Discuss the impact of this event on the financial statements of Suka Balak Bhd based on MFRS 137 Provision, Contingent Liabilities and Contingent Assets.