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Question - During 2022, one of WIND Company's employees sued the company as a result of a workplace-related accident. The employee claims damages amounting to P800,000, however, WIND's legal counsel estimates that it is more than likely that it is liable for P650,000. On February 15, 2023, WIND made an out-of-court settlement with the employee, paying P700,000 to compensate for the employee's medical bills and lost wages. The financial statements of WIND for the year ended December 31, 2022 were authorized for issue on March 30, 2023.
Required - How much will WIND recognize as estimated liability for damages on its December 31, 2022 statement of financial position?
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administrative expenses as either variable or fixed
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