3 Question 3 Snare plc is in the process of finalising its financial statements for the year ended 31st December 2020 and has approached you for advice on the following issues: i. Snare operates a chain of nightclubs. The government has introduced a new law that requires all the 'door staff obtain a certification if they are to continue to operate the doors. Previously the certification was voluntary, but will become compulsory. The training course costs 1,500 for each member of staff. The law will come into effect on 1st March 2021. The total cost of sending the staff for training will be material. The directors have provided for the full amount of the expected training costs in the financial statements arguing they will be unable to operate the clubs if the staff are not certified. (5 marks) ii. On the 6th January 2021 a flood caused serious damage to inventory at a nightclub in central London belonging to Snare. A material amount of inventory was destroyed. (4 marks) iii. After a review of the business, the directors decided during December 2020 to dispose of a nightclub in Birmingham. The directors are waiting to put the nightclub on the market as they feel demand for property.in Birmingham will increase during 2021. Consequently, once it is put up for sale the directors are confident the building will sell by the end of June 2021. marks) (5