[chiani]

Part B of this question I think would require a disclosure in FS for that year ended following the adverse publicity as it is a sudsequent event.
If in the preceeding year, d adverse publicity gets worse & mgt has done nothing to improve the product, a provision for writedowns and legal claims must be made thereby increasing liabilities by that amount.
Dont really understand part A.

[chiani]

Thank you, its quite clear now.

[Author]

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