XYZ Pty Ltd has a dispute with the taxation department, in relation to previous year's tax return a tax deduction made on travel by XYZ Pty Ltd. Legal advice suggests that it is not likely that the company will lose the case, although the chance of losing is not remote.

This will be reported in XYZ Pty Ltd Annual report as a:

A) an asset in the balance sheet

B) a liability in the balance sheet

C) an income in the income statement

D) a contingent liability in the notes to financial statements

E) an equity account in the balance sheet