Kathryn Nary audited the accounts of Carringbush Lrd, engineering firm listed on the Australian Stock Exchange, for the year ended 30 June 20x9

Kathryn is aware tht the following events that took palce after 30 June (but before she had issueed her report dated 19 September 20x9) may affect the comapny's financial stateements.

a. on 25 july 20xi, carringbush settled and paid a claim invloving prior employees alleging sexual discrimination as a result of promotions announced at the Christmas party in 20x8. Five women who had been overlooked for management promotions undertook legal action in March 20*9.

b. On 1 August 20*9, Carringbush ltd made an announcement to the Austrailan Stock Exchange of tis intention to take over a private engineering partnership.

This would increase sales revenue of Carringbush ltd by 15%

It wass to be funded by 1:10 rights issues.

c. on 12 August 20*9, a fire damaged the head office of Carringbush.

The buildinng fixtures and fittings werw only partly insured.

d. At its 5 September 20x9 meeting Carringbush board of directors voted to double the advertising budget for the coming year and authorised a change in advertising agencies.

Note that each event is independetn and is to be considered seperately.

What is the required treatment of each event in the financial statements?

Explain and justify your answer