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    • Question

      An insurer faces a probable liability of ₹25 lakh from

      a pending court case related to motor insurance. As per Ind-AS 37, how should the liability be recorded?
      A Ignore Correct Answer Incorrect Answer
      B Disclose only Correct Answer Incorrect Answer
      C Recognise provision in P&L Correct Answer Incorrect Answer
      D Show under OCI Correct Answer Incorrect Answer
      E Transfer to revaluation reserve Correct Answer Incorrect Answer

      Solution

      Probable + estimable = provision recognised.

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