Callow Co. Example: After a wedding in 20X8 ten people died, possibly as a result of food poisoning from products sold by Callow Co. Legal proceedings are started seeking damages from Callow but it disputes liability. Up to the date of approval of the financial statements for the year to 31 December 20X8, Callow’s lawyers advise that it is probable that it will not be found liable. However, when Callow prepares the financial statements for the year to 31 December 20X9 its lawyers advised that, owing to developments in the case, it is probable that it will be found liable. What is the required accounting treatment: (a) At 31 December 20X8? (b) At 31 December 20X9?