The financial year of Terry’s Tiles Ltd ended on 31 December 20XO. Your auditors’ report was signed on 26 February and the financial statements were issued on 9 March. Listed below are events that occur or are discovered from the date of the balance sheet to 30 June of the following year. Assume that each has a material effect on the financial statements.

1. 15 January — Inventory is sold at a price below the net realisable value at 31 December.

2. 20 January — A major customer becomes bankrupt as a result of ongoing net losses.

3. 31 January — The board of directors authorises the acquisition of a company as a subsidiary.

4. 10 February — A fire destroys a major company warehouse.

5. 25 February — A lawsuit is decided against the company for an accident that occurred on 10 October. The damages are three times higher than estimated on 31 December.

6. 28 February — The board of directors authorises a two-for-one stock split.

7. 7 March-—A foreign government expropriates a major foreign subsidiary following the unexpected overthrow of the government.

8. 31 March — A court rules that a minority group is the rightful legal owner of land on which an operating division is located.

Required

(a) Indicate your responsibilities for each of the above events.

(b) Indicate what type of disclosure (if any) you would recommend in relation to each of the above events.