Question: Miller plc has received a claim from a customer for breach of contract and is in dispute. The customer has made a claim against Miller

Miller plc has received a claim from a customer for breach of contract and is in dispute. The customer has made a claim against Miller for losses suffered of £150,000 due to the failure by Miller to deliver supplies on the due date. The management of Miller dispute the claim, saying that they did deliver on time and therefore there is no case to answer. Miller legal advisors support management and have advised that they think the claim has only a 20% chance of success.

How should Miller plc account for this claim under IAS 37?

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Under IAS 37 Provisions Contingent Liabilities and Contingent Assets Miller plc should account for t... View full answer

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