Your house is currently under construction through a cheap deal you have closed with your engineer...

  

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Your house is currently under construction through a cheap deal you have closed with your engineer best friend. Due to the cheapness of the deal, your friend chose not to install safety nets anymore, exposing your neighbors to apparent danger. One morning, a hollow block fell from the construction and hit your neighbor's daughter, causing them to sue you in court. Your lawyers told you that while they will try hard to win the case, you must also expect to pay damages to the daughter amounting P300,000. However, your lawyers tell you that the judge may not be able to reach to a court decision for at least two years. What concepts or principles in the Conceptual Framework might help you in the proper accounting for this? Your house is currently under construction through a cheap deal you have closed with your engineer best friend. Due to the cheapness of the deal, your friend chose not to install safety nets anymore, exposing your neighbors to apparent danger. One morning, a hollow block fell from the construction and hit your neighbor's daughter, causing them to sue you in court. Your lawyers told you that while they will try hard to win the case, you must also expect to pay damages to the daughter amounting P300,000. However, your lawyers tell you that the judge may not be able to reach to a court decision for at least two years. What concepts or principles in the Conceptual Framework might help you in the proper accounting for this?

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The concepts or principles in the Conceptual Framework that might help you in the proper account... View the full answer