CERTYNEX IFRS ACADEMY

Bréhavel had provided 95,000 for a dispute with a distributor. In March, the dispute is finally closed by a settlement of 70,000, paid immediately. Record the entries.

Existing provision: 95,000
Settlement amount: 70,000

Line 1
Account Provision for litigation (use)
Line 2
Account Cash

Line 1
Account Provision for litigation (reversal)
Line 2
Account Provision expense (reversal)