For each of the following material after-reporting-period events of Great City Ltd state whether adjustment or disclosure is required to the 30 June 2023 financial statements. Justify your answers. If adjustment is required, state the nature of the adjustment.

(1) 19 July 2023: a debtor owing $70 500 was declared insolvent. The debtor had not made any payments in the last four months and half of the debt had already been treated as doubtful debt at year end (2 marks)

(il) 29 July 2023: the directors declared a dividend of $100,000 from profits during the year ending 30 June 2023. (2 marks)

Broadly speaking, what disclosures are required of reporting entities with regards to related-party transactions? How can this information be useful to readers of financial statements?