IAS 37

Verge (06/13)

February 2012, an inter-city train did what appeared to be superficial damage to a storage facility of a local company. The directors of the company expressed an intention to sue Verge but in the absence of legal proceedings, Verge had not recognized a provision in its financial statements to 31 March 2012. In July 2012, Verge received notification for damages of $1·2m, which was based upon the estimated cost to repair the building.