Wrong on So on Many levels is an elevator company that was sued for 200,000 a breach of contract . their legal counsel has expressed the opinion that the Company will be found liable by the courts. The company's legal counsel estimates there is a 60% chance that the customer will be awarded $200,000 ,a 30% probability that the customer will be awarded $150000 and a 10% that the customer will be awarded 100.000.

if Wrong on so many levels reports in accordance with IFRS , WHAT is the most appropriate accounting treatment? RECORD A LIABILITY of 100,000.

Record an asset of 175000

None of the other options

Record A LIABILITY of \$175,000

Record A LIABILITY of \$200,000

Disclose the details in the notes to the financial statements