What amount of provision should be provided in relation to labor dispute? * Effortless Company provided the following information on Dec. 31, 2021: - Effortless has signed as guarantor for a Php2,000,000 loan by Power Bank to Haggardness, Inc., a principal supplier to Efforless Company. There is a remote likelihood that Effortless will have to make payment on behalf of Haggardness. - Effortless is defending against a labor dispute and believes that there is 50% chance it will lose in court. If the entity loses, management believes that effects will fall somewhere in the range of Php1,500,000 and 2,500,000.

What amount of provision should be provided in relation to labor dispute? * Effortless Company provided the following information on Dec. 31, 2021: - Effortless has signed as guarantor for a Php2,000,000 loan by Power Bank to Haggardness, Inc., a principal supplier to Efforless Company. There is a remote likelihood that Effortless will have to make payment on behalf of Haggardness. - Effortless is defending against a labor dispute and believes that there is 50% chance it will lose in court. If the entity loses, management believes that effects will fall somewhere in the range of Php1,500,000 and 2,500,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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