问题详情

(a)TheobjectiveofIAS10EventsaftertheReportingPeriodistoprescribethetreatmentofeventsthatoccurafteranentity’sreportingperiodhasended.
Required:
DefinetheperiodtowhichIAS10relatesanddistinguishbetweenadjustingandnon-adjustingevents.
(5marks)
(b)Waxwork’scurrentyearendis31March2009.Itsfinancialstatementswereauthorisedforissuebyitsdirectorson6May2009andtheAGM(annualgeneralmeeting)willbeheldon3June2009.Thefollowingmattershavebeenbroughttoyourattention:
(i)On12April2009afirecompletelydestroyedthecompany’slargestwarehouseandtheinventoryit
contained.Thecarryingamountsofthewarehouseandtheinventorywere$10millionand$6million
respectively.Itappearsthatthecompanyhasnotupdatedthevalueofitsinsurancecoverandonlyexpects
tobeabletorecoveramaximumof$9millionfromitsinsurers.Waxwork’stradingoperationshavebeen
severelydisruptedsincethefireanditexpectslargetradinglossesforsometimetocome.(4marks)
(ii)Asingleclassofinventoryheldatanotherwarehousewasvaluedatitscostof$460,000at31March
2009.InApril200970%ofthisinventorywassoldfor$280,000onwhichWaxworks’salesstaffearned
acommissionof15%ofthesellingprice.(3marks)
(iii)On18May2009thegovernmentannouncedtaxchangeswhichhavetheeffectofincreasingWaxwork’s
deferredtaxliabilityby$650,000asat31March2009.(3marks)
Required:
Explaintherequiredtreatmentoftheitems(i)to(iii)byWaxworkinitsfinancialstatementsfortheyear
ended31March2009.
Note:assumeallitemsarematerialandareindependentofeachother.(10marksasindicated)
请帮忙给出正确答案和分析，谢谢！