CERTYNEX IFRS ACADEMY

Since October, Zéstine has faced a claim from a competitor; at 31 December, an outflow is considered unlikely and a contingent liability is disclosed. In February, an expert report narrows the range at stake, the outflow remaining unlikely. Which treatment applies?

Recognise a provision at 31 December for the midpoint of the new range.

Leave the note unchanged, as there is no effect on recognised amounts.

Remove the note until final judgment.

Update the description of the contingent liability, without recognising a provision.