Sablonne must compensate a neighbour for water damage caused by its installations; the best estimate is 250,000. Sablonne remains liable for the whole amount towards the neighbour, but its insurer will virtually certainly reimburse 150,000. Record the year-end entries (gross presentation in profit or loss).
- Best estimate of the compensation
- 250,000
- Insurer's reimbursement
- 150,000