Using the decision tree from the Guidance (Part B) section of AASB 137 Provisions, Contingent Liabilities and Contingent Assets, determine the effect of each of the following events on the respective companys balance sheet:

d) In July 2015, a tourist, who rented a Segway scooter from Kangaroo Tours Ltd, crashed into a cyclist on a busy intersection. The tourist was unharmed but the cyclist was hospitalised, while the scooter and road bike were completely destroyed. That the tour conductor on the day forgot to get the tour participants to sign the insurance claim forms. Therefore, the cyclist started seeking damages for a total of $100,000 from the Kangaroo Tours, but the company disputes liability. Up to the date of authorisation of the financial statements for the year to 30 June 2016, the entitys lawyers advise that it is probable that the entity will not be found liable. However, when the entity prepares the financial statements for the year to 30 June 2017, its lawyers advise that, owing to developments in the case, it is probable that the entity will be found liable.

What was the business required to report in its report for the financial year end 30 June 2016?

What will it report for the financial year end 30 June 2017?