Question 3(10 marks: 18 marks)The MC Ltd has just started with the export of mouse...
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Accounting
Question marks: marksThe MC Ltd has just started with the export of mouse traps to various countries. The following claims have been instituted against the company during the year:Mr G lost his thumb while he was handling a mouse trap with an extraordinarily strong spring:He is claiming R in respect of medical and other costs. According to the company's legal representatives there is a probable that the claim will sueceed.The case was still ongoing at year end.You are required to: Discuss, in terms of the definition and recognition of provisions, contingent liabilities and contingent assets, how the above the transaction should be recognition. marks Assuming it is a provision, discuss how it should be disclosed.
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