6 (6 Marks) a. Shirt Shop Ltd is a producer of fashion clothes. The audit report for the year ended 30 June 2021 was signed on 5 August 2021 and the financial report was issued to shareholders on 10 August 2021. Consider the following independent events. Assume that each event is material. (i) JD Ltd is one of Shirt Shop Ltd major customers. JD Ltd suffered a fire on 22 July. Unfortunately, JD Ltd does not have insurance, it is highly likely that JD Ltd accounts receivable balance will be paid. (ii) On 24 July, one famous market analyst warns investors not to invest in fashion industry due to poor economic downturn. The market price for Shirt Shop Ltd's shares subsequently declined by 12%. Page 9 of 10 2. 3. (iii) On 18 August, the Australian Tax Office (ATO) ruled in favour of Shirt Shop Ltd regarding R&D tax credits. Shirt Shop Ltd is allowed to claim the full amount of R&D tax credits. For each situation above, identy the type of subsequent event (Adjusting event or non- adjusting event) and describe how each would impact Shirt Shop Ltd's financial report for the year ended 30 June 2021. (6 marks) Event Type of subsequent event (Adjusting event or non- adjusting event) Impact on financial report for the year ended 30 June 2021