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Journal entryBeginnerVariant — group VG.IAS37.000001Published

Question · The three recognition conditions

A customer of Ulmara was injured in November 20X5 by a defective appliance sold by Ulmara. At the reporting date of 31 December 20X5, Ulmara's advisers consider its liability established and compensation probable; the best estimate of the amount payable is 85,000. Record the entry at the reporting date.

Best estimate of the compensation
85,000
Your answer
  1. Line 1

    Account Provision expense

  2. Line 2

    Account Provision for litigation

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