Following the meeting with the Board, you received a memo from the CEO seeking information about the impact the following matters could have on the 2022 financial statements:

1. Business as Usual Limited will acquire approximately 30% of the shares of Mardies Transport Limited. The market is unaware of the negotiations, which are only in the preliminary stage and no formal contracts have been prepared. The company currently uses Mardies Transport Limited to deliver 60% of distribution requirements.
2. The company has just secured a five-year contract to exclusively supply Private Medical Co, Australia’s most prominent private hospital, with its masks and other protective clothing. The contract is conservatively estimated to increase sales revenue by 10 % building to 25% and will require an extension to the warehouse in year 2.
3. In April 2022 the government announced a change to the tax rate to reduce the income tax rate by 5%

Required

Prepare an internal memo to the CEO and Board of directors that includes:

1. Advice, with suitable reference to AASB110, if the matters raised by the CEO are adjusting or non-adjusting events. 
2. The required adjusting journal entries and/or disclosure notes required to support your advice in point 1. 
3. If adjusting journal entries are required, include details about the impact on the financial statements (i.e., what the new amounts on the financials will be, any movements in deferred tax assets and liabilities).