At its reporting date, Rosvald has three items: (1) legal fees for a hearing held in December, at the agreed rate, not yet invoiced; (2) a customer claim for which Rosvald denies any liability, its advisers considering an unfavourable ruling possible but unlikely; (3) the repairs expected on products sold under warranty, estimated from past experience. Justify the classification of each item: accrual, provision or contingent liability.
JudgmentIntermediatePublished