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Problem 1: IAS 37 provision, contingent liabilities and contingent assets In which of the following circumstances should an expense for 450,000 $ be recognized?
1- for damages in a lawsuit that the reporting company has 75% chances of losingThe damage claim is for 600,000$2- for the expected cost to dismantle an oil platform as required by low. The cost is 700,000 $ which has present value 450,0003- for the cost 450,000$ tom make good land contaminated a result of past years operation a law requiring clear up is virtually certain to be enacted4- for the 450,000 $ cost of fitting fire safety equipment to comply with law coming into effect in the next financial year
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