PROVISIONS,CONTINGENT LIABILITIES,CONTINGENT ASSETS IAS 37

And what is it about the printed solution that you don't understand?

Then try, post your attempt on this forum and I'll tell you where you've gone wrong (if, indeed, you have gone wrong) But please don't expect me to do your homework assignments - that's not what we're here for OK?

I agree with substantially all that you have written: "there is a present obligation arising from past events because the company has been in existence and has been sued by the community and there is no out flow that the economic benefits will be required to settle the obligation." except for this last part: "and there is no out flow that the economic benefits will be required to settle the obligation." There has not yet been any outflow, but there surely will be! You'll need to quantify that amount and then make the appropriate provision ... or recommend that the CEO leaves Uganda very soon OK?

OK, tell me what figure you have arrived at and, again, I'll tell you whether I agree or not If you don't know how to arrive at present values, I suggest that you watch John's F2 lectures - they're free! Then have a go at doing the calculation and let me know what figure you have arrived at (and show me your workings!) I'm looking forward to helping you with this problem

More than 2 days and no response - I'm closing the thread