Question
a) Listed below are companies whose financial year ends are 31 December, 2008. The financial statements were approved by their respective directors on 31 March
a) Listed below are companies whose financial year ends are 31 December, 2008. The financial statements were approved by their respective directors on 31 March 2009. During 2009, the following material events took place:
On 5 January 2009, a large trade receivable of Alpha went into liquidation owing GHe100,000 as at the reporting period date. It is likely that this debtor balance will realise nothing.
Alpha sold a major property, which was included in the statement of financial position at GHe100,000 and for which contracts had been exchanged on 15
December 2008. The sale was completed on 15 February 2009 at a price of GHe250,000.
-in 28 February 2009, the mail order activities of Beta, a retail-trading group, were Shut down with closure costs amounting to GH&2.5million.
On I April 2009, the discovery of sand under Gamma's major civil engineering contract causes the costs of the contract to increase by 25% for which there would be no corresponding recovery from the customer
Required:
You are required to state, with reasons. whether each of the above items numbered (1) to (ivy are adjusting or non-adjusting events in the companies" financial statements for the year ended 31 December 2008.
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