Mirelan, which runs a leisure park, is being sued by visitors injured when a footbridge collapsed in August 20X5. At 31 December, its lawyers are divided; an expert report delivered on 25 January 20X6, before the financial statements are authorised, establishes that the collapse resulted from a maintenance failure attributable to Mirelan. Write a memo concluding on whether a present obligation exists at 31 December and on its treatment, stating the evidence used and the element of judgement.