Below are three independent situations.

1. ABC Ltd is a manufacturer of boats and gives warranties at thetime of sale to purchasers of its boats. Pursuant to the warrantyterms, ABC Ltd undertakes to make good, by repair or replacement,manufacturing defects that become apparent within three years fromthe date of sale.
2. ABC Ltd has a number of non-current assets, some of whichrequire, in addition to normal ongoing maintenance, substantialexpenditure on major refits/refurbishment at certain intervals oron major components that require replacement at regularintervals.
3. XYZ Ltd is a listed company that provides food to functionalcentres that host events such as wedding and engagement parties.After an engagement party held by one of XYZ Ltd’s customers in May2020, 50 people became ill, possibly as a results of food poisoningfrom products sold by XYZ Ltd. Legal proceedings were commencedseeking damages from XYZ Ltd. XYZ Ltd disputed liability byclaiming that the functional centre was at fault for handling thefood incorrectly. Up to the date of 30 June 2020 (financialyear-end), XYZ Ltd’s lawyers advise that it was probable that XYZLtd would not be found liable

   REQUIRED:

   Should a liability in the form of a provision be recorded?Briefly justify your decisions.