High Ltd is the primary contractor responsible for constructing a power plant for Thai Lid. It has been discovered that there are defects in the construction of the power plant. The estimated cost to fix these defects is $$100$m$.$ It had previously recognised a provision for warranty of $$40$m on the project as part of project costs. However, High Ltd believes it can recover a substantial part of the costs from the subcontractors who performed some of the construction works. Negotiations with these subcontractors are ongoing, and so far, only two subcontractors have accepted liability. The amount of reimbursement that is considered virtually certain is estimated to be $$10$m$.$

Can you explain with journal entries how High Ltd shall account for the above estimates of

costs and reimbursements? What would be criteria for recording such liabilities?