Company XYZ has a financial year-end on 31 December. On 5 January 2023, after the reporting period, the company received a customer complaint regarding a defective product sold in December 2022. The company estimates the potential cost of product recalls and warranties related to the defective product will be RM200,000.
Discuss how the following situations should be treated in the financial statements of Company XYZ:

i) The defective product issue existed at the end of the reporting period on 31 December 2022.

ii) The defective product issue arose after the reporting period.