How should class chemical report the information

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Reference no: EM132782870

Question 1: On October 1, 2019, Class 101 Chemical was identified as a potentially responsible party by its Environmental Regulatory Agency. Class 101's management along with its counsel have concluded that it is probable that Class 101 will be responsible for damages, and a reasonable estimate of these damages is P6,000,000. Class 101's insurance policy of P9, 000,000 has a deductible clause of P500, 000. How should Class 101 Chemical report this information in its financial statements at December 31, 2019?

Reference no: EM132782870

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