Carla Company carried a provision of P2,000,000 in the draft financial statements for the year ended...

 

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Carla Company carried a provision of P2,000,000 in the draft financial statements for the year ended December 31, 2021 in relation to an unresolved court case. On January 31, 2022, when the financial statements for the year ended December 31, 2021 had not yet been authorized for issue, the case was settled and the court decided the final total damages to be paid by the entity at P3,000,000. What amount should be adjusted on December 31, 2021 in relation to this event? Carla Company carried a provision of P2,000,000 in the draft financial statements for the year ended December 31, 2021 in relation to an unresolved court case. On January 31, 2022, when the financial statements for the year ended December 31, 2021 had not yet been authorized for issue, the case was settled and the court decided the final total damages to be paid by the entity at P3,000,000. What amount should be adjusted on December 31, 2021 in relation to this event?

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The amount that should be adjusted on December 31 202... View the full answer