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Question - Miller plc has received a claim from a customer for breach of contract and is in dispute. The customer has made a claim against Miller for losses suffered of? £150,000 due to the failure by Miller to deliver supplies on the due date. The management of Miller dispute the? claim, saying that they did deliver on time and therefore there is no case to answer. Miller legal advisors support management and have advised that they think the claim has only a? 20% chance of success. How should Miller plc account for this claim under IAS? 37?
Recognize a provision of £150,000
Recognize a provision of £?30,000
Make no provision but disclose the dispute in the notes to the accounts?
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