Fabricators Limited, an engineering company, makes up its financial statements to 31 March in each year. The financial statements for the year ended 31 March 20X1 showed a turnover of €3,000,000 and trading profit of €400,000. Before approval of the financial statements by the board of directors on 30 June 20X1 the following events took place.

(a) The financial statements of Patchup Limited for the year ended 28 February 20X1 were received which indicated a permanent decline in that company’s financial position.

Fabricators Limited had bought shares in Patchup Limited some years ago and this purchase was included in unquoted investments at its cost of €100,000. The financial statements received indicated that the investment was now worth only €50,000.

(b) There was a fire at the company’s warehouse on 30 April 20X1 when inventory to the value of €500,000 was destroyed. It transpired that the inventory in the warehouse was under-insured by some 50%.

(c) On 31 March 20X1 a provision had been made of €60,000 in respect of any remedial work required on plant supplied and installed at a customer's premises on 26 March 20X1. No remedial work had been carried out and on 1 May 20X1 the customer had confirmed acceptance of the plant. Accordingly, no further liability would be involved.

Requirement Explain, giving reasons as to how the above events should be dealt with in the company’s financial statements for the year ended 31 March 20X1.