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Pump is a company that pipes gas to major consumers. During the year it was prosecuted when toxic gas escaped into the atmosphere. It is probable that it will have to pay approximately $10 million on fines and court costs in two years time. What should the company report in its financial statements? A. It should build up the provision over 2 years showing amounts in the income statement each year and may include an envionmental report. B. It should disclose $10 million as a contingent liability and must disclose an envionmental report explaining the issue. C. It should build up the provision over 2 years showing amounts in the income statement each year and must include an envionmental report. D. It should show all the provision in the income statement this year and may include an envionmental report. |