An entity polluted a nearby river on May 6, 2018. After attending numerous court hearings,...
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An entity polluted a nearby river on May 6, 2018. After attending numerous court hearings, the entitys legal counsel had advised on December 30, 2019 that it is possible that the entity will lose the case and will incur fines of approximately $500 million to cover damages. The entitys directors and management have also indicated the following events that took place recently: Date Event Amount January 15, 2020 Declaration of dividends $200 million January 30, 2020 Issue of ordinary shares $800 million March 1, 2020 Damage to warehouse $500 million March 5, 2020 Discovery of receivables fraud $100 million The fraud related to payments made by customers before December 31, 2019 on outstanding receivables. The entitys reporting date is December 31st of each year. Required: Discuss the possible treatment of the above events in accordance with IFRS.
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