viva co is being sued by a computer for copying one of its designs. the case is in the early stages and has not yet gone to court. however viva co's lawyers feel that the competitor has a good chance of success even though the financial effect cannot yet be estimated. How should this be dealt with in the financial statements of viva co?

a. A contingent liability should be disclosed

b. No disclosure is necessary

c. A contingent asset should be disclosed

d. A provision should be made for the expected loss