Question 2 (25 Marks) Identify the following events occurring after the reporting date but before financial statements are approved as adjusting or non-adjusting. a) A valuation of property providing evidence of impairment in value at the reporting date. b) The company makes an issue of 100,000 shares which raises Rials 200,000 shortly after the Statement of Financial Position date. c) A legal action had been brought against the company for breach of contract prior to the year end. The outcome was decided shortly after the Statement of Financial Position date, and as a result the company will have to pay costs and damages totaling Rials 80,000. No provision has currently been made for this event. d) Sale of inventory held at the reporting date for less than cost. e) Discovery of fraud or error affecting the financial statements. f) The insolvency of a customer with a debt owing at the reporting date which is still outstanding. g) Inventory included in the accounts at the year end at cost Rials 25,000 was subsequently sold for Rials 15,000. h) A building in use at the Statement of Financial Position date and valued at Rials 500,000 was completely destroyed by fire. Unfortunately, only half of the value was covered by insurance. i) A debt which was written off recovered suddenly. 1) Destruction of stock in floods