CERTYNEX IFRS ACADEMY

Ulmeta has engaged a subcontractor to remove asbestos from a building. The contract signed with the owner provides that this subcontractor pays directly the costs of making safe an incident that occurred in 20X5, Ulmeta not being liable for them if the subcontractor fails to pay. How does Ulmeta account for these costs?

It provides for the costs and recognises a reimbursement of the same amount.

It has no liability for these costs: they are excluded from the provision.

It provides for the costs without recognising any reimbursement.

It discloses them as a contingent liability because of the subcontractor's possible default.