Total 50 marks Question 1 The draft financial statement of Alpha Co, a limited liability company, for the year ended 31" Dec 2020 are currently under review. The following point has been raised: Recently, users of a new perfume have suffered blistering of the skin along with considerable pain and discomfort. A customer has made a claim against Alpha Co for injury suffered following the purchases and use of a defective perfume. Following investigation by the manufacturer, Alpha Co, it appears that product contamination occurred during the bottling process which was performed by bottler. Alpha Co's Legal advisers have confirmed that company will probably have to pay financial compensation of S3 million to the customers. Required A. According to IAS 37, State with reasons how Alpha Company should record the Compensation claim of $3 million in the financial statements for the year ended 31st December 2020 with relevant accounting entries wherever applicable. (200 words) (10 Marks) B. Assume that, the legal adviser has suggested that Alpha Company can put a counter claim with the bottler, and he mentioned that company will probably can recover $3 m from the bottler. You are required to state with reasons how Alpha Company should record the claim of $3m from the bottler in the financial statements for the year ended 31 December 2020 with relevant accounting entries if required. (200 words) C. Briefly discuss the Provisions, contingent Liabilities and contingent assets in accordance to IAS 37 .Clearly stating whether it should be recognised in financial statement or disclosure as notes to accounts. (Word count 200-250 words )