My understanding is that once you place a PO and you get an...

My understanding is that once you place a PO and you get an invoice for the PO and if you don't pay it sits on your balance sheet as a liability until its cleared. Doesn't matter if you are in dispute. There is an amount similar to the claim sitting in "others playable". At best you could offset this in your assets as accrued income and have it sit on your assets to offset, but I doubt if the auditors would accept this. While trade receivables are higher than previous years (significantly) I can't see it being due to this. Legal costs are normally expensed as they occur.

In my opinion, if they lose its a cash impact but P&L neutral, if they win, its a positive impact on the P&L cash neutral. That unless they win their cross claim.

DYOR, there is simply not enough information to be sure.