ABC Ltd has provided the following information concerning events occurring between the end of the reporting period and the date the accounts were authorized. This information is to be considered in the preparation of the financial statements for the year ended 30 June 2022. a) On 18 July 2022, the release of a far superior and cheaper product by a competitor caused a major decline in demand for Product X made by ABC Ltd. In an effort to sell remaining stock of the product, ABC Ltd has reduced its selling price to 50% of cost. Inventories on hand at 30 June 2022 were recorded at their cost of $160 000. b) On 15 August 2022, the Department of Occupational Health and Safety charged the com- pany over unsafe storage practices that resulted in the leakage of toxic materials into a local creek. The leakage occurred on 3 July 2022. If found to be negligent by the court, the company will have to pay a fine of $400 000 plus legal and clean-up costs in excess of $300 000. c) On 21 August 2022, the purchasing manager discovered that a batch of invoices relating to June inventories purchases had not been processed. The invoices totalled $60 000. Question 2 Required 1) Classify the above events as either adjusting or non-adjusting events after the end of the reporting period. Justify your classification. Hint: the following template can be used to help you arranging the answer of this question. (6 Marks) (Date, Event, Condition at 30 June 2022, New information, Classification.)