Part A On 3 September 2021, Ms Fallen suffered a stroke when presented with a copy of her favourite magazine - the local rag. The local rag is a low budget paper, which specialises in sensationalising the best-kept secrets of Johannesburg high society. Ms Fallen currently alleges that her stroke resulted from the stress of her not having received proper attention at the Med Servce Limited, in Sandton. Ms Fallen, a lady of considerable means but unfortunate looks, was discharged from the clinic in question on 2 September 2021after having a small alteration to the size and shape of her nose (which Johannesburg high society felt was now long overdue). Unable to resist the temptation of obtaining a sneak preview of her latest modification, and strictly speaking against the plastic surgeon's rules, Ms Fallen clandestinely unwound her bandages and took a peak. As luck would have it, a daring reporter, who gained access to Ms Fallen's private ward disguised as a male nurse, photographed Ms Fallen's prematurely exposed modification. Before disappearing from South Africa the photographer sold the picture, for an undisclosed amount, to the local rag which printed it on the front page of their very next issue. The rag reported record sales for that issue, whilst Ms Fallen suffered immeasurable embarrassment. Ms Fallen's failed attempts at suing the local rag for publishing the article featuring her failed attempt at self-improvement have not deterred her resolve to obtain satisfaction. On 15 December 2021, her case against the Med Service Limited opened. As the courts close for the festive season the case resumed in late January 2022. Public interest in the case is unprecedented. The case is not expected to be resolved for at least another two months. Whilst the clinic sympathises with Ms Fallen they contest that her condition is unrelated to the treatment she received at the clinic. Required: [10] Advise the directors of the Med Service Limited, on how to account for these matters in their 2021 annual financial statements. Part B On 2 December 2021, the board of directors of Pak It (Pty) Limited, a domestic packaging manufacturer, took a decision to abandon its Cornubia cardboard box factory. The decision to shut down the factory was as a result of the continuing operating losses of the Cornubia plant since the riots that took place in July 2021 in KZN. The decision to close was communicated to the employees and announced in the financial press on 2 December 2021. Pak It (Pty) Limited has three other South African packaging manufacturing plants, two of which manufacture the same product as the Soweto plant. The Soweto factory closed on 31 January 2022. Required: [12] Advise the directors of Shrinking (Pty) Limited on how to account for these matters in their 2021 annual financial statements