Trevelyan & Co. is being sued for damages. When preparing its 2002 financial statements the directors took the view that the likelihood of any payments having to be made to the claimant was remote. In preparing the 2003 financial statements their view was that it was possible that such payments would have to be made, and in preparing the 2004 statements their view was that such payments were probable. For the 2005 statements there was virtual certainty that the payments would have to be made. The payments were actually made in 2006. In which financial statements must provision for the payments first be made?