CERTYNEX IFRS ACADEMY

Irdane is both the defendant in a dispute with a customer (adverse ruling probable, amount estimable) and the claimant in a dispute against a subcontractor (gain probable, amount estimable). Neither outcome is virtually certain. What is the overall treatment?

A provision and a receivable, by symmetry.

No recognition for either, for lack of virtual certainty.

The provision and the receivable are offset and only the net balance is recognised.

A provision for the dispute brought against it; mere note disclosure for the dispute it has brought.