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Court case

This topic has 2 replies, 2 voices, and was last updated 4 years ago by P2-D2.

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August 20, 2018 at 2:57 pm #468617
zkaay
- Topics: 212
- Replies: 98
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
August 20, 2018 at 3:55 pm #468629
zkaay
- Topics: 212
- Replies: 98
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
August 21, 2018 at 8:39 am #468705
P2-D2
Keymaster
- Topics: 4
- Replies: 6234
Hi,

We would need more information with regards to the outcome of the court case to determine the accounting treatment.

Thanks
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