Question3 4 Marks For each of the following material events, state whether they...
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Accounting
Question3 4 Marks
For each of the following material events, state whether they are Type I or Type II subsequent events and the action to be taken by the client (i.e., the financial statements need to be adjusted or the events need to be disclosed in the notes). Assume the financial year ends on 30 June 2020.
Event
Type
Action taken
There was a major currency realignment on 8 July 2020 that affected several account balances
of the entity.
A customer was declared bankrupt on 4 July 2020. The customers debt was material, and was considered collectable at year end.
The entity merged with another company on 20 July 2020.
A commercial assessment on 15 July 2020 established a claim that was in existence, but was of an uncertain amount as at 30 June 2020.
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