Financial Accounting 1

6) The following events took place in Saeed Bhd: (1) Shortly after the financial year ended on June 30, 2018 but before the financial statements were authorised for issue, Saeed Bhd's inventory was destroyed by a fire outbreak which resulted in a loss of RM100 million. (ii) The company's financial year that ended June 30, 2018 shows an amount of RM30 million that is due from one of its debtors, Mr. Ammar. Saeed Bhd provided for impairment at June 30, 2018 of RM7.5 million against the gross value of RM30 million due from Mr. Ammar. On July 31, 2018 before the financial statements were authorised for issue, Mr. Ammar was declared bankrupt and unable to pay the debt. (iii)Saeed Bhd was sued on June 30, 2018 but the judgment was only handed down on July 21, 2018. The Company was found liable for damages and cost amounting to N31million were awarded against it. On July 22, 2018, Saeed Berhad filed a claim with its insurers and on July 29, 2018, it was notified that the insurer would only cover N26 million of the loss. Required: Prepare a brief memorandum advising the directors of Saeed's Bhd on the accounting treatment and/or disclosure required as a result of the events in (1) to (iii) after the reporting date under MFRS 110. (15 marks) [Total: 25 Marks]