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Single choiceAdvancedVariant — group VG.IAS37.000002Published

Question · Present obligation and obligating event

A supplier is claiming penalties from Fontrel for breach of a supply contract. At the reporting date, Fontrel disputes the claim; its lawyers nevertheless consider it more likely than not that the court will find a wrongful breach, and the penalties can be reliably estimated. Payment would then be probable. What does Fontrel conclude?

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