Disclosure issues

Note: Each event is independent

10.1 An earthquake occurred in one of the warehouses of Sable Ltd in Melbourne on 15 June 2022 and caused extensive damage worth $50,000. The warehouse and its contents are fully insured. No disclosure has so far been made about this event in the financial statements for the year ended 30 June 2022. There was no impact on the operations of the company as other fully stocked warehouses were able to meet all sales commitments.

REQUIRED:

1.Classify the above event occurring after the end of the reporting period as an adjusting or a non-adjusting event. Explain the impact, if any, on the financial statements of Garuda Ltd for the year ended 30 June 2022 to comply with AASB110 Events after the Reporting Period. Note the impact, if any, must be shown in dollar amounts.