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Zeta Ltd a company that prepares its financial statements in accordance with IFRS has the following pending items at December 31 2014 The company is the defendant in a product liability lawsuit

Zeta, Ltd., a company that prepares its financial statements in accordance with IFRS, has the following pending items at December 31, 2014. The company is the defendant in a product liability lawsuit as a result of injuries incurred by purchasers of its products. Legal counsel has indicated that an unfavorable verdict in the amount of $650,000 is probable. The company is involved in another lawsuit and their legal counsel believes it is reasonably possible that the lawsuit will result in a loss of $175,000. The entity sells a product that is subject to a warranty. The estimated warranty liability is $150,000.

 

Apr 29 2020 View more View Less

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