Hi sir,
Ye is 31/12/14
the company has asked the bank to make cash of $2 million available in the event that an existing court case against the company is successful. The court case is being brought by an individual who suffered severe and debilitating side effects when participating in a clinical trial in 2013.
1) should we recognize provision of contingent liab? (clarify the reason within the context).
2) In clinical trial people voluntarily try the medicine so for testing if it ok or have side effects
Do they have a right to claime a compensation if it has sude effects?
Thanks
Ask the Tutor ACCA SBR
Court case
Its clear for me In the event its successful ( this possible not probable outflow)
So i will go for a disclosure as contingent liab
Correct me if am wrong
8y ago#2Hi,
We would need more information with regards to the outcome of the court case to determine the accounting treatment.
Thanks
Sign into reply to this topic.