Nirvana is a software development entity that prepares it financial statements to the end of each financial year. During the reporting year ended 30 June 2020, the events described below occurred:

1. Before and as at 30 June 2020, Nirvanawas engaged in a legal dispute with a disputatious customer, Paradise Getaways, who alleged that Nirvana supplied a faulty software program for online bookings that has caused significant financial loss.

1. Based on expert legal advice, the directors of Nirvana assess that this troublesome customer Paradise Getaways may have an 75% probability of winning this legal dispute, if and when it is settled which may not be until late 2022.

1. If Paradise Getaways wins this legal dispute eventually, then the likely outcome is that a judge could award damages of up to $1 million.

1. The directors of Nirvana also believe that the fault in its software product was actually caused by a sub-contractor, Fully Moonlit Designs, which specialises in the design of web-based holidays bookings programs, who supplied a defective component.

1. So, Nirvana's directors have decided to take legal action against Fully Moonlit Designs, the supplier of the faulty product, calculating that there is 75% probability that Nirvana will win its damages claim of $750,000 from the supplier.

Required

Showhow each of the 5 events above would be reported in the financial statements of Nirvana for the financial year ended 30^th June 2020. Ignore discounting.

Event 1):

Event 2):

Event 3):

Event 4):

Event 5):