Entity 3 has the following outstanding issues before finalised its accounts. (i) Entity 3 was sued by a customer for 1m for a breach of contract over a cancelled order in 2021. The legal team has advised the company that there is a 30% chance the Entity 3 will lose the lawsuit. A court hearing is due to take place in early 2022. An irrecoverable legal fee of 150,000 is estimated to be paid in 2022 for this lawsuit. (ii) Entity 3 has a policy to clear up any environmental contamination caused by its operations, even though it is not legally obliged to do so. The future cleaning up expense is expected to be 500,000 in 7 years' time. The cost of capital for Entity 3 is 5% per annum. (iii) Entity 3 has closed one of its divisions. The details of the closure have been approved by the Board but has not yet been communicated to its customers and employees. It is estimated that an expected redundancy payment of 2m may be required. (iv) Entity 3 provides a one-year warranty for one of its products. Any defects arising within the warranty period would be repaired by Entity 3 free-of-charge. A minor repair would be 10 per unit of goods. A major repair will cost 25 per unit of goods. During 2021, Entity 3 sold 750,000 units of this product. it is estimated that 5% of sales would result in a minor repair and 2% of sales will be subject to major repair. Required Explain, and show, how you would account for items (i) to (iv) in accordance with applicable IAS's and IFRS's