Event 1 On 16 September 2023, there was a fire in the companys main warehouse. Loss of inventories was covered by insurance but there was significant disruption to the flow of production output. The financial effects of the disruption are estimated to be $510 000, and are not covered by insurance. Event 2 On 23 July 2023, a favourable judgement was handed down in a lawsuit lodged by ABC Ltd against a major supplier for damages arising from poor-quality materials delivered in April 2023. The damages and costs awarded to ABC Ltd totalled $900 000. The draft accounts currently report this as a contingent asset. ABC Ltds draft profit for the year ended 30 June 2023 is