Transaction 3: 1. PQR, a listed company in New Zealand commenced litigation against ABC for negligent advice given on the installation of machineries in PQR's plants. In August 2019, the lawyers of ABC informed that they cannot predict the progress of the case. The final hearing for damages had not been scheduled as at the date the financial statements for 2019 were authorised for issue. ABC estimated that it would cost about $545,000 2. ABC signed an agreement with ASB Bank to the effect that ABC would guarantee a loan made by ASB to XYZ. The loan value with Bank was $4.2 million as at the balance sheet date of 31 December 2019. Liquidator of XYZ confirmed ABC that the company is not in a position to pay its liabilities. Required: Determine the accounting treatment for I and 2 applying NZ IAS 37 Provisions, Contingent Liabilities, and Contingent Assets