Siddle Corp. was recently sued by a competitor for patent infringement. Lawyers have determined that it is probable (and very likely) that Siddle will lose the case, and that Siddle will have to pay between $100,000 and $250,000 in damages. In light of this case, Siddle is considering establishing a $100,000 self-insurance allowance. Siddle follows IFRS.
(a) What entry(ies), if any, should Siddle record in respect of this lawsuit?
(b) Repeat part (a) assuming that Siddle follows ASPE.