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Asian LLC is facing 25 legal claims all related to the same issue, each of...

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Accounting

Asian LLC is facing 25 legal claims all related to the same issue, each of which has a 45% likelihood of successful outcome (i.e., no payment to be made by Asian LLC) and a 55% likelihood of unfavorable outcome, with each adverse claim expected to result in an outflow of OMR 100,000. Management has calculated the amount to be recognized as a provision in the annual financial statements. Which of the following is the correct amount?

a- OMR 1,125,000

b- None of them

c- OMR 1,375,000

d- OMR 55,000

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