can this be fully answered:

QUESTION 2

Shuai Ltd completed their financial statements for the year ended 31 March 2023 and authorised them for issue on 12 June 2023. The new managing director, who started in May of 2023, is unsure about the treatment of the following material events that occurred in 2023 and has asked for your professional advice.

(i) 10 January 2023

On 10 January 2023, the directors declared a final dividend of $200 000 for the year

ended 31 March 2023. This final dividend was paid on 10 June 2023.

(ii) 5 April 2023

Initially measured at the cost of $900 600, slow-moving inventory was measured at a net

realisable value of $700 000 in the general ledger inventory account on 31 March 2023.

On 5 April 2023, this inventory sold for $820 000.

(iii) 24 April 2023

In December 2022, a customer initiated legal proceedings against Shuai Ltd concerning a breach of contract. On 31 March 2023, the companys legal advisers informed the directors that Shuai Ltd could be found liable for an estimated $600 000. Because of this advice, a provision was recognised in the financial statements. On 24 April 2023, the court found Shuai Ltd liable and was required to pay damages of $500 000.

Question 2 continued:

(iv) 2 May 2023 On 31 March 2023, a credit sale customer Desperate Ltd owed Shuai Ltd $250 000. Desperate Ltd's balance was considered doubtful at balance date. On 2 May 2023, Desperate Ltd went into bankruptcy.

(v) 15 May 2023

On 15 May 2023, Shuai Ltd noticed that its investment in Failing Ltd was listed on the stock exchange at $3.20 per share. On 31 March 2023, this investment of 80 000 shares in Failing Ltd had been measured at the fair value of $4.60 per share.

Required:

(a) Prepare a professional report (as taught in ACCTG 211) for the Shuai Ltd managing director to explain the treatment of the above five events according to NZ IAS 10 Events after the Reporting Period.

(b) The managing director emailed you specific questions about these five events, and you provided answers within your report. These specific questions are included in the Answer Booklet.

ANSWER USING THS FOLLOWING:

QUESTION 2

Professional Report for Shuai Ltd

(i)10 January 2018

Explain the treatment according to NZ IAS 10:

Specific question from the managing director: What was the effect of the declared dividend on the Statement of Financial Position as at 31 March 2023?

(ii) 5 April 2023

Explain the treatment according to NZ IAS 10:

Specific question from the managing director: What was the effect on the general ledger accounts when this inventory was first remeasured from cost to NRV $700 000?

Question 2 continued:

(iii) 24 April 2023

Explain the treatment according to NZ IAS 10:

Specific question from the managing director: What was the effect on the general ledger accounts after Shuai Ltd followed the legal advice and recognised a provision on 31 March 2023?

(iv) 2 May 2023

Explain the treatment according to NZ IAS 10:

Specific question from the managing director: As of 31 March 2023, please determine the carrying amount of the individual account receivable Desperate Ltd, i.e., before Shuai Ltd found out about the bankruptcy.

Question 2 continued:

(v) 15 May 2023

Explain the treatment according to NZ IAS 10:

Specific question from the managing director: What was the general ledger balance of the asset Investment in Failing Ltd when Shuai Ltd measured it at fair value on 31 March 2023?