Recognising a provision   LO4 Tres Ltd is a listed company that provides food to function centres that host events such as weddings and engagement parties. After an engagement party held by one of Tres Ltd’s customers in June 2020, 100 people became seriously ill, possibly as a result of food poisoning from products sold by Tres Ltd. Legal proceedings were commenced seeking damages from Tres Ltd. Tres Ltd disputed liability by claiming that the function centre was at fault for handling the food incorrectly. Up to the date of authorisation for issue of the financial statements for the year to 30 June 2020, Tres Ltd’s lawyers advised that it was probable that Tres Ltd would not be found liable. However, 2 weeks after the financial statements were published, Tres Ltd’s lawyers advised that, owing to developments in the case, it was probable that Tres Ltd would be found liable and the estimated damages would be material to the company’s reported profits. Required Should Tres Ltd recognise a liability for damages in its financial statements at 30 June 2020? How should it deal with the information it receives 2 weeks after the financial statements are published?