for the following events that took place, do the note disclosure and refer to the correct AASB paragraph. make sure to correctly mention the paragraphs used from AASB 101, AASb 110, AASB 108.

Required: Note Disclosure for the following events.

refer to correct AASB paras,

Events that took place,

a) In October 2023, the company contracted with its auditors for the auditors to undertake consulting work. The auditors were paid $980,000 for this consulting (and this is included as consulting expenses in the trial balance above). Part of this consulting work related to trying to manage credit risk. The company was concerned that its bad debts were increasing but also concerned about the impact any tightening of credit policy would have on sales revenues. As a result of this consulting the company changed its credit arrangements. Tighter credit checks were undertaken, and this reduced the number of customers allowed credit. However, to encourage sales, those customers that were allowed credit were given extra time to pay (from the previous 14 days required to 2 months in some cases). These changes were implemented and had little impact on overall sales revenues but did result in the incidence of bad debts decreasing. Hence the directors have decided that the allowance for doubtful debts should now be estimated as 1% of the balance of accounts receivable (previously this was estimated at 5% of accounts receivable).

b) Revenue received in advance relates to deposits received for special orders. Where customers order goods that are not items that the company usually supplies, it requires a 20% deposit to be paid. Accrued revenue relates to service revenues where work has been completed but not yet invoiced.

c) Prior to 1 July 2023 the company had 3 issues of shares. These were: in share capital note,

• 300,000 ordinary shares at an issue price of $4.50 were issued in March 2019. These are fully paid. In relation to this issue $8,000 share issue costs were incurred, and these were paid by the company in May 2019.
• 700,000 ordinary shares at an issue price of $6.00 were issued in September 2020. These are fully paid. In relation to this issue $32,000 share issue costs were incurred, and these were paid by the company in October 2020.
• 800,000 ordinary shares at an issue price of $7.00 were issued in January 2022. These are called and paid to $4.80 as at 30 June 2022. In relation to this issue $26,000 share issue costs were incurred, and these were paid by the company in February 2023.
• On 1 September 2023, the company made a first and final call for the remaining uncalled/unpaid portion of the share issue price for the shares issued in January 2022. All call money was received by the 1 June 2024. Hence these shares are now fully paid.

d) On 1 March 2024, an employee of the company is suing the company for negligence and requesting damages of $220,000. The employee was involved in an accident whilst working for the company in May 2023 and as a result suffered a back injury. Legal advice has indicated that if the case went to court there is only a 20% likelihood that the company would be found liable and if this was the case, then the damages payable would amount to $85,000. The first court hearing is scheduled on 15 August 2024.