On February 5, 2022, an employee filed a P2,000,000 lawsuit against Beautiful Company for damages suffered when the plan

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answerhappygod
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On February 5, 2022, an employee filed a P2,000,000 lawsuit against Beautiful Company for damages suffered when the plan

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On February 5, 2022, an employee filed a P2,000,000 lawsuit
against Beautiful Company for damages suffered when the plant
exploded on December 29, 2021. The legal counsel of the company
expects the entity will probably lose the lawsuit and estimates the
loss to be P500,000. The employee has offered to settle the lawsuit
out of court for P900,000 but Adequate will not agree to the
settlement.

How much is the provision to be reported on December 31, 2021?
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