Delaware Plcs financial year end is December 31, 2019 and the following events occurred after the reporting date but before the financial statements were published:

1. On January 15, 2020, prior to the approval of the financial statements by the Board a customer owing $1,000,000 to Delaware Plc filed for bankruptcy.

2. On February 1, 2020 Delaware Plc made a rights issue of 1 for 4 shares at a price of $2. This was fully taken up. The price of the companys ordinary shares immediately before the rights issue was $3.00 each.

Required:

1) State the type of event involved in (i) and (ii) above, and )

2) Explain the required treatment of each event.