(a) In preparing the financial statements of Lam Company Limited (Lam) for the year ended 31 December 2016, Nelson, the financial controller of Lam, identified the following material event that took place after the reporting period. The board of directors of Lam approved the financial statements for issue on 20 March 2017. On 9 January 2017, Lam entered into a sale and purchase agreement with an independent third party to dispose of a building at a consideration of $100 million. The sale and purchase agreement was subsequently duly completed on 9 February 2017, resulting in a gain in disposal of appropriately $48 million. Required: Explain the accounting treatment for the above event after the reporting period by reference to relevant accounting standards.