Simtz Company is preparing its opening IFRS statement of financial position on January 1, 2012. Under its

Question:

Simtz Company is preparing its opening IFRS statement of financial position on January 1, 2012. Under its previous GAAP, Smitz did not record a prevision for litigation in the amount of €85,000 that would be recognized under IFRS.
Prepare the entry (in any needed to record this adjustment at the date of issuance.