CERTYNEX IFRS ACADEMY

Lectorane faces an emerging class action whose outflow is possible; the number of claimants and the basis of the claims make any estimate of the financial effect impracticable at the reporting date. Which note complies?

A note merely stating that "a dispute exists".

No note until an amount can be estimated.

A provision of a lump-sum amount in place of the note.

A note describing the dispute and its uncertainties, and stating that the estimate is not practicable.