E G AZ fb) D Question 2 - Measurement (6 marks) **Please only enter your response in the blue cell. This is the only cell that will be marked. 3 1 2 Your client, Macrosoft Ltd., has a lawsuit outstanding. As their accountant, you know that although the exact amount of the settlment is unknown, the lawsuit must be recorded on the financial statements. Explain briefly to your client, (a) the two cash flow approaches that are available for determining the amount to record in the year end financial statements, (b) which you would use and why. (No calculations are necessary) 4 a 5 6 b) 7 8 9 AZ fx b) A B D E 1 Question 2 - Measurement (6 marks) **Please only enter your response in the blue cell. This is the only cell that will be marked. 3 Your client, Macrosoft Ltd., has a lawsuit outstanding. As their accountant, you know that although the exact amount of the settlment is unknown, the lawsuit must be recorded on the financial statements. Explain briefly to your client, (a) the two cash flow approaches that are available for determining the amount to record in the year end financial statements, (b) which you would use and why. (No calculations are necessary) 4 a) 6 b) 7 8. 9 10 11