Accounting Treatment for loyalty points Given the material nature of the legal claim and its potential impact on CI's financial position, it is imperative for CI to promptly engage legal counsel. Seeking legal advice will allow CI to assess the merit of the lawsuit and evaluate the likelihood of an unfavorable outcome. Based on the legal counsel's evaluation, CI can then make an informed decision regarding the recognition of a provision or disclosure in the financial statements. To determine the appropriate accounting treatment, CI needs to expeditiously seek legal counsel's assistance to assess the merits of the lawsuit and the potential financial consequences. The legal counsel's evaluation will enable CI to ascertain the probability of an outflow of resources and whether a provision should be recognized in the financial statements. Additionally, CI should ensure comprehensive documentation of all relevant information pertaining to the legal case to support any financial reporting disclosures. can you devide this recommendation into two parts accounting treatments and financials impact?

Answer rating: 100% (QA)

Certainly Heres a breakdown of the recommendation into two parts Accounting Treatment Given the mate... View the full answer