Jack is an audit partner with BC Partners, a mid-tier accounting firm in Melbourne. Jack is finalising the audit of the financial statements of SKL Ltd as of

30 June 2023. Just prior to signing the audit report in September 2023, Paul reviewed subsequent events. The following three events were identified:

1. A debtor with a material balance on 30 June 2023 declared bankruptcy on 5

September 2023. The debtor had replied to the positive debtor's confirmation confirming the amount owed to SKL Ltd. This debtor was not considered doubtful at year-end. However, a fire destroyed the debtor's manufacturing plant on 12 August and the debtor has been unable to remain in business.

1. Another debtor, also with a material balance on 30 June 2023, declared bankruptcy on 31 August 2023. The debtor had replied to the positive debtor's confirmation confirming the amount owed to SKL Ltd. Management had not considered the debtor doubtful at year-end as they regularly paid their outstanding amount late. However, it is now apparent that the debtor was insolvent on 30 June 2023.
2. On 30 July the SKL's main warehouse was extensively flooded, damaging all stock on hand. SKL Ltd believes its insurance will cover all costs associated with the flooding including loss of profits.

For each situation above, assess the type of subsequent event (Adjusting event or

non-adjusting event) and how each would impact SKL Ltd's financial report for the

year ended 30 June 2023.