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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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