In June 2021, a costumer at ABC Corp slipped on a wet floor and broke a...

 

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In June 2021, a costumer at ABC Corp slipped on a wet floor and broke a hip. The costumer sued the corporation in July,2019. The company's attorneys believe that it is 55% likely that ABC will lose this case. Management concludes that the 55% likelihood of incurring the loss is less than probable. The attorneys estimate that the loss will range between $700,000 and $800,000, Management There is no best estimate in this range of possible losses. The company beginning balance for provision liability is $100,000. Use IFRS. 1. Determine the Provision Loss $ (10 points) 2. If US GAAP is used. What will be the loss? S (10 points) In June 2021, a costumer at ABC Corp slipped on a wet floor and broke a hip. The costumer sued the corporation in July,2019. The company's attorneys believe that it is 55% likely that ABC will lose this case. Management concludes that the 55% likelihood of incurring the loss is less than probable. The attorneys estimate that the loss will range between $700,000 and $800,000, Management There is no best estimate in this range of possible losses. The company beginning balance for provision liability is $100,000. Use IFRS. 1. Determine the Provision Loss $ (10 points) 2. If US GAAP is used. What will be the loss? S (10 points)

Answer rating: 100% (QA)

1 Provisions loss 700000 2 If US GAAP is used the loss will be 800000 Note Qualifying contingent lia... View the full answer