121 and case studies Approach u is scheduled for was on SO March ment enquiry Was to the media On 25 February has the continued need for a segment ot your business there is significant uncertainty regarding the necessity offered by the and its industry colleagues, There have been significant B At December 2014, AAA Limited bans owing from, individuals ot So Negotiations seeking an earls, settlement of the loans have been ongoing throughout the year, The has offered a settlement package of SS million cash as consideration the extinguishment of the debts. Accordingly, at 31 December the directors had written (a) on 28 February 2015 the otter was rejected and a revised offer package encompassing listed shares and a small amount of cash was put forward. The current market value of the package has been estimated at (b) Would your assessment change if the original offer had been rejected and the revised offer package submitted on 15 March 2015? (c) Would your assessment change if the current market value of the revised package offered on 2B February 2015 had been estimated at C Consider the discovery Of the following legal actions: (a) On 7 March 2015, you discovered an uninsured legal action against the client that had Originated on 31 January 2014. (b) On 20 February 2015, the company settled a legal action out of court that had originated in 2011 and was listed as a contingent liability at 31 December 2014. D Consider the following situations where adebtor of NACD Limited has gone bankrupt: (a) On 29 April 2015, you discovered that a debtor at 31 December 2014 had gone bankrupt on 1 April 2015. The debt had appeared collectible at 31 December 2014 and 3 March 2015. (b) On 20 February 2015. you discovered that a debtor at 31 December 2014 had gone bankrupt on 3 February 2015. The cause of the bankruptcy was an unexpected loss of a major lawsuit by the debtor on IS January 2015. (e) On 20 February 2015, you discovered that a debtor had gone bankrupt on 3 February 2015. The sale took place on 2 January 2015. The cause Of the bankruptcy Was a major uninsured fire at one Of the debtor's premises on 31 December 2014. REQUIRED In each Of the above events A to l), which are all material, State the appropriate action I to 4 for the situation and justify your response. The alternative aetions are as follows: I. Adjust the 31 December 2014 financial report. 2. Disclose the information in the subsequent Events note the 31 December 2014 financial report. 3. Request the client to issue revised 31 December 2014 financial report. 4. NO action is required.