IAS 10 deals with events after the reporting period.

c. Define the period covered by IAS 10? (2 marks) d. Explain when the financial statements should be adjusted? (4 marks) e. Why should non-adjusting events be disclosed? (4 marks)

f. A customer made a claim for $80,000 for losses suffered by the late delivery of goods. Of this amount $60,000 was directly associated with the goods to be delivered before the year end. Explain how this would be dealt with under IAS10? (6 marks) g. After the year end, a substantial quantity of inventory was destroyed by fire. The loss was not adequately covered by insurance. This event is likely to threaten the ability of the business to continue as a going concern. Discuss the matters to be considered in making a decision under iAS10. (6 marks) h. The business entered into a favourable contract after the year end that would see its profits increase by 15% over the next three years. Explain how this should be dealt with under IAS10?