Which of the following options is the appropriate accounting treatment for the post-reporting

period
event of Ranny Inc. under PAS 10?
a. The entity should provide P100, 000, 000 provision because this is an “adjusting event” and
the financial statement were authorized to be issued after the accident.
b. The entity should disclose P100, 000, 000 as a contingent liability because it is an “adjusting
event”
.
c. The entity should disclose P100, 000, 000 as a “contingent liability” because it is a
present obligation with an improbable outflow
d. Assuming the probability of the lawsuit being decided against Ranny Inc. is remote, the entity
should disclose it in the footnote, because it is a non-adjusting material event.