2. The following events are classified as adjusting events for an entity whose financial year-end was 31 December 2020, except: (2 Points) The entity has provided for a contingent liability of RM425,000 but judgement made on 12 February 2021 wa RM500,000. The entity was part of the way the construction of an office block. The initial contract price was RM25 million. However, on 12 February 2021, the contract was revised to RM17 million. A civil suit was brought against the entity before the end of the financial year. The lawyer advised the company that the company would lose the case and suffer a loss of RM1.2 million. On 6 March 2020, the company and the complainant agreed to settle out of court. The company paid RM1 million. The factory plant was damaged on 3rd March 2021 and the recoverable amount was estimated to be RM1.2 million and the carrying amount was RM1.5 million. 3. Rantau Bhd is in the processing its final account before approval of BOD on 1 August 2020. The final year end of Rantau Bhd on 30 June 2020. One of the customers who owed RM280,000 was declared bankrupt on 1 July 2020. None of the amount is expected to be recovered. The accounting treatment is: * (2 Points) It is an error. Disclose that the customer has declared bankruptcy. It is an adjusting event. Rantau Bhd has to decrease the trade receivable by RM280,000. And decrease cash by RM280,000. It is a non-adjusting event. Rantau Bhd has to decrease the trade receivable by RM280,000. And decrease the impairment of trade receivable by RM280,000. It is an adjusting event. Rantau Bhd has to decrease the trade receivable by RM280,000. And decrease the impairment of trade receivable by RM280,000. 4. Indicate the following events as an adjusting event, The year-end was 31 December 2020 and the financial statements were authorised for issue on 15 March 2021. * (2 Points) Entity proposed the final ordinary dividend on 1 March 2021. The factory plant was damaged on 3 March 2021 and the recoverable amount was estimated to be RM1.2 million and the carrying amount is RM1.5 million. On 28 February 2021, the entity decided to close down its shoemaking operation which was identified as a separate operation from the rest of the entity's business. On 24 February, the board of directors agreed to sell a subsidiary. 5. Below are the examples of the adjusting events are, except: * (2 Points) Impairment of assets. Profit sharing or bonus Cost of assets purchased. A major business combination after the reporting date. 6. An entity made a provision for doubtful debts of 2% of its trade receivables and the amount provided for at the end of 31 December 2019 was RM1.5 million. On 15 January 2020, a debtor who owed the entity RM2 million became insolvent. The entity will: * (2 Points) O Ignore the event Adjust the financial statement of year 2020 as it is an adjusting event. Adjust the financial statement of year 2019 as it is an adjusting event. Make a disclosure as it is a non-adjusting event