CERTYNEX IFRS ACADEMY

Opaliane must remedy a roof leak in a warehouse it delivered to a customer. A first intervention would cost 140,000 and is the most likely individual outcome; however, the experts consider the risk high that one or two further interventions, of 90,000 each, will be needed. How should the provision be set?

At 140,000, the most likely outcome, with no other adjustment.

At an amount above 140,000, the other possible outcomes being mostly higher.

At 320,000, the cost of the worst-case scenario, out of prudence.

At 90,000, the cost of one further intervention.