Toyota Ltd and the National Highway Traffic Safety Administration (NHTSA) announced on 29 January 2009 a major safety recall involving 134 900 Yaris units. The Toyota Yaris recall refers to vehicles sold in the United States and built from 2006 through 2007. The recall follows the NHTSA discovering a defect with the seat belt pretensioners that retracts the seat belts in case of a crash. Toyota Ltd has sent notifications to all Yaris owners via the media, to take their vehicles to their closest Toyota dealers for repairs. The defective part will be replaced at no cost to the car owner and it is estimated that the repair will only take one hour. Management of Toyota Ltd have estimated that 85% of the affected vehicles will be returned for repairs, based on the experience with the previous recall in the year 2000 The estimated cost of repairs is R500 per car. Toyota Ltd's reporting period ends on the last day of February each year. Case 2 A claim was instituted on 15 February 2009 against Toyota by the South African Taxi Association (SATA) claiming that Toyota had promised to support the industry with the taxi recapitalisation programme. They are claiming R 3 million rand from the company in compensation for the breach of contract. The legal advisors of Toyota are of the opinion that SATA's claim will not succeed however they are waiting for the matter to serve before the court of law. REQUIRED: a) De o togalom (5) PROVISTUTIS Semes (5) C) Discuss how the two cases above should be recognised in the financial statements of Toyota Ltd for the reporting period ending 28 February 2009 for each case